The influence of power position on the depth of collaboration

Abstract

Purpose – This paper aims to analyze the influence of power on the depth of collaboration by discussing the power relations and collaborative relationships between buyers and suppliers in networks. The aim is to shed light on how power position in a network influences the depth of collaboration. Design/methodology/approach – The study utilizes a case research as a method and analyzes a network from the Finnish food industry. The empirical data comprises 29 semi-structured interviews conducted among the personnel of four case companies. Findings – The findings of the study suggest that the network actors' power relations affect the form of the relationships. It seems that power influences the depth of collaboration, which is minimal if the actors do not have balanced power positions. Highlighting the importance of the network context, the results also indicate that the role and position in the network may crucially determine the character of the power relations if the actors are otherwise in balanced positions. Practical implications – The results have implications for purchasing and supply chain managers and practitioners in terms of shedding light on the relation between power and collaboration. It enhances understanding of how power influences collaboration, and of how a wider network perspective could determine the power relations between the companies. Managers need to be aware of the effects of power on the nature of their relationships and, moreover, on the depth of collaboration. This enhances their ability to determine their positions in relation to other companies, and to develop relationships offering opportunities for deeper collaboration. Originality/value – The literature review reveals that the issues of power and collaboration in the network context have rarely been connected and discussed in relation to each other. This constitutes a clear and notable research gap given the implication that the relation between power and collaboration, in terms of the influence of power position, is still an unexplored area. Moreover, whereas most previous studies on the phenomenon of power concentrate on analyzing dyadic relationships, this study raises the question of the network context.

Influenciadores da Gestão Colaborativa em Cadeias de Suprimentos

“…Neste sentido, o momento é oportuno para pesquisas que explorem este tema. Como também, Kähkönen (2014) afirma que, ainda, a colaboração tem sido pouco examinada no contexto das CS, e existem muitas lacunas para pesquisa nesta área. Para estes autores investigações devem centrar-se especialmente na visão sobre criação de valor da colaboração em redes, como em entender o papel da colaboração na geração de capacidades complementares para os agentes envolvidos na cadeia.…”

Revisiting the European Horsemeat Scandal: The Role of Power Asymmetry in the Food Supply Chain Crisis

“…Given the critical role of power dependence in supply chain relationship management (Bowman et al, 2013; Chung, Huang, Jin, & Sternquist, ; Cox et al, 2005; Davis & Cobb, ; Fearne et al, 2005; Hingley, ; Kähkönen, ; Maglaras, Bourlakis, & Fotopoulos, ; Nyaga, Lynch, Schminke & Ambrose, ; Terpend & Krause, ), it is surprising that little attention has been paid to the nature of mutual dependence between single supplier–multiple buyer relationships, especially in situations where major retailers are the weaker partners (see Duarte & Davies, 2004; Geyskens et al, 1998, 1999; Leat & Revoredo‐Giha, 2008; Madichie, ).…”

“…While this may be partially explained using the social exchange theory (Cropanzano & Mitchell, ; Tasselli, Kilduff, & Men, 2015), the power‐dependency theory may well be more expedient (see Hingley, ). As Meehan and Wright (, p. 669) point out, “who, or what, holds power in business‐to‐business buyer–seller relationships is a debate at the heart of power theory.” Indeed the power imbalance in such relationships (Touboulic et al, ) may have implications on the nature and level of collaborations (Kähkönen, ).…”

The dark and the bright side of power: implications for the management of business-to-business relationships

“…Some studies emphasize the necessity for symmetry and mutuality to foster longer-term relationships, while power asymmetries are associated with less stability and more conflict and are considered to be detrimental to sustaining a business relationship (Ganesan 1994;Rokkan and Haugland 2002). According to Kähkönen and Anni-Kaisa (2014), the relationships between buyers and sellers are mostly uneven. They state that buyers have usually more power and relationships of balanced power are rather rare.…”