Strategic responses to power dominance in buyer-supplier relationships

• Published in: International journal of physical distribution & logistics management 2015-03, Vol.45 (1/2), p.182-203
• Main Authors: Habib, Farooq, Bastl, Marko, Pilbeam, Colin
• Format: Article
• Language: eng ; jpn
• Subjects: Distribution management & systems; Logistics; Management science & operations
• ISSN: 0960-0035; 1758-664X
• DOI: 10.1108/IJPDLM-05-2013-0138

Purpose – The purpose of this paper is to identify the strategic options available to a weaker actor to counteract the dominance of a stronger actor in a buyer-supplier relationship, and identifies those factors that influence the choice of individual options. Design/methodology/approach – Following a systematic literature review methodology, a five-phase approach of planning, searching, screening, extraction and synthesis was rigorously employed. In total, 48 studies were used to draw conclusions about the phenomena of interest. Findings – Captured in an integrated conceptual framework, this study identified five strategic options available to the weaker actor in order to counteract a power dominance of a stronger player, which were underpinned by seven influencing factors. Research limitations/implications – The proposed conceptual framework requires first qualitative empirical validation using an abductive multi-case strategy, followed by a theory testing phase, employing a configurational approach. Practical implications – The proposed framework suggested that the weaker actor in a buyer-supplier relationship has five options to address power dominance. These options were available within as well as beyond a focal dyadic relationship. For the stronger actor, the authors showed that power dominance is a temporary state rather than permanent. Originality/value – This study marks one of the first attempts to present a coherent set of strategic options and underpinning factors to counteract power dominance in a buyer-supplier relationship from the perspective of a weaker actor. Given the underexplored nature of the topic, the study also provides guidelines for further research.