Social exchange theory is used to gain a better understanding of the relationship between a buyer and a supplier that is characterized by lock‐in situations. We begin by reviewing the theoretical foundations of social exchange theory. Next, we use an illustrative multinational business example from a Danish Business Group to demonstrate the complexities of the lock‐in situation. Conjectures related to lock‐in behaviors are initially developed and then examined by means of a game‐theoretic model. The analysis provides a basis for the development of propositions which are examined employing a behavioral experiment. The results indicate that the optimal pricing strategy of the supplier is to lower the price with increasing demand and the optimal investment intensity of the buyer decreases with increasing demand. The paper concludes by presenting directions for future research.
Supply chain management promises competitive advantages for industrial organizations. The introduction of new products and services, or entry into new markets, is likely to be more successful if accompanied by innovative supply chain designs, innovative supply chain management practices, and enabling technology. This is a widely accepted premise in business practice today. However, systematic research and knowledge about supply chain innovation (SCI) is little developed. There is a lack of common terminology, of agreement about the conceptual understanding, and of related empirical work. This paper presents an exploratory study that aims to provide a better understanding of SCI, mirroring leading edge practice, and providing a sound terminological and conceptual basis for advanced academic work in the field. The research is based on an in-depth literature review and the analysis of a set of secondary data sources: 36 SCI cases, drawn from applications for the Council of Supply Chain Management Professionals' (CSCMP) Supply Chain Innovation Award. As results of the research, a new SCI definition, the construction of a descriptive model of its key elements, and discussion of implications are presented.
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