The properties of the coherence-or-power selectable operation of an external-cavity semiconductor diode laser through the control of intracavity polarization states have been characterized in detail. In our technique, a diffraction grating and a reflector functioned as a polarization-dependent output coupler, such that the portion of light fed back to the gain medium was readily controlled by rotating the intracavity polarization axis, which resulted in the selectable operation of either a high degree of coherence or a high power for the laser output. We could continuously sweep the correlation widths over a range of approximately one order of magnitude, as well as four-fold output powers by simply rotating the intracavity half-wave plate. We also demonstrated experiments on optical phase locking, using two independent coherence-or-power selectable lasers.