Are co‐operation and trust being confused with power? An analysis of food retailing in Australia and the UK

Abstract

Category management has been promoted as a mechanism to achieve closer working relations between suppliers and retailers. The premise has been that category management should result in a reduced reliance on the use of power as an element of the relationship and increased levels of cooperation. However, power is an element of any relationship and exists even when not activated. Further, the premise rests on the notion that cooperation is a polar opposite of power. This research confirms that food industry managers perceive the use of power in solely negative terms. Power can be defined operationally as the ability of one channel member to influence the marketing decisions of another channel member and hence must be related to cooperation. This paper reviews the nature of dependence, power and cooperation and explores the role of these constructs in the practice of category management. The results of continuing research in the area of category management relationships are reported.

Suppliers' roles in category management: A study of supplier–retailer relationships in Finland and Sweden

“…However, it is the contention of the present study that such an understanding of power is too narrow. As Dapiran & Hogarth-Scott (2003) have observed, the concept of power is not necessarily opposed to the notion of cooperation.…”

“…According to Dapiran and Hogarth-Scott (2003), control can be direct or indirect. Direct control refers to a coercive, commanding influence that produces overt compliance by the influenced party; this compliant behaviour is likely to include certain negative sentiments.…”

Analysing trust as a means of improving the effectiveness of the virtual supply chain

“…To maintain a long-term partnership between supply chain partners Dapiran and Hogarth-Scott (2003) proposes that "a degree of trust is essential". The commitment to building trust by supply chain partners is claimed to be a significant determinant in achieving successful supply chain partnerships (Heffernan, 2004;Kwon and Suh, 2005;Poirier, 1999;Sahay, 2003;Selnes, 1998;Wilson, 1995;Zineldin and Jonsson, 2000).…”

“…Maintaining and building trust between supply chain partners relies on continued commitment to communication together with sharing information and planning (Batt, 2001a-b;Coulter and Coulter, 2002;Dapiran and Hogarth-Scott, 2003;Kwon and Suh, 2005;Myhr and Spekman, 2005;Ruppel, 2004;Sahay, 2003;Selnes, 1998;Wu et al, 2004;Yee and Yeung, 2002;Zineldin and Jonsson, 2000).…”

“…Supply chain partnerships are built on the trust that their partners pursue shared values or compatible goals (Batt, 2003;Coulter and Coulter, 2002;Dapiran and Hogarth-Scott, 2003;Sahay, 2003;Wilson, 1995;Wong and Sohal, 2002;Zineldin and Jonsson, 2000).…”