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The strategic options to counteract power dominance and the opportunities to increase attractiveness by delivering higher value to partners in buyer-seller relationships : a case study to the possibilities of a weaker actor in the transportation sector.

Seppenwoolde, M.Sc. J.J. (2019) The strategic options to counteract power dominance and the opportunities to increase attractiveness by delivering higher value to partners in buyer-seller relationships : a case study to the possibilities of a weaker actor in the transportation sector.

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Abstract:Recently, literature shows an large increase in the number of publications focused on buyer-supplier relationships. In general, literature suggests that buyer-supplier relationships that are characterized by a balanced mutual dependence are superior to other buyer-supplier relationships. However, contrary to what theory suggests, in practice, firms in supply chains want to control each other. This tendency to control exist in all tiers of supply chains and it is an issue that requires firms’ constant attention in order to effectively manage inter-firm relationships. There where existing studies have focused mainly on more powerful actors that control and influence behaviors and exchanges in buyer-supplier relationships Habib et al. (2015) have brought a fragmented body together of literature shedding light on the dilemma of the weaker actor in buyer-seller relationships in how to respond to the power dominance of the stronger actor. Their initiated framework however, requires empirical validation. The aim of this study is therefore to give a contribution to the literature by collecting and exploring data within a real-life dyadic and network context, from the perspective of the weaker actor. In order to do so, this research involved an multiple case study to explore and understand under which conditions; i.e. features of underpinning factors, a weaker actor applies which strategic option(s) towards another actor in case former mentioned holds the weaker position in buyer-supplier relationships that are characterized by asymmetric power dominance. The collected data gathered via semi-structured, open-ended interviews allowed to develop a scheme presenting the conditions of underpinning factors that are found to influence a weaker actor’s choice to select a specific strategic option with the aim to counteract the power dominance of a stronger business partner. Furthermore, to enable further research to overcome limitations regarding the generalizability and external validity of the research findings, a measurement tool that is able to capture what combination of underpinning factors makes a weaker actor eager to select a specific strategic option to mitigate (potential) negative effects deriving from asymmetric power dominance in a buyer-supplier relationship, is developed.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:83 economics, 85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/79434
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