It is possible to define the exponential
$$\exp(M) = \sum_{n \ge 0}^{\infty} \frac{M^n}{n!}$$
of any matrix using power series. Similarly, it is possible to define the logarithm
$$\log(I + M) = \sum_{n \ge 1} \frac{(-1)^{n-1} M^n}{n}$$
when the above series converges (this is guaranteed for example if the largest singular value of $M$ is less than $1$). We can therefore define
$$M^N = \exp(N \log M)$$
by imitating the identity $a^b = e^{b \log a}$ for, say, positive reals, but this won't have good properties unless $N$ and $M$ commute, I think. It's better to consider the exponential and logarithm separately.
As I have discussed elsewhere on math.SE, the fact that the ordinary exponential takes two inputs which are the same type is misleading. Most (but not all) "exponential-type" operations in mathematics take two inputs which are different types.