University of Twente Student Theses
Strategic Choices in Asymmetrical Buyer-Supplier Relationships: The Influence of Relationship Characteristics on Small Shipping Companies' Decision-Making
Kamman, Ruben (2023) Strategic Choices in Asymmetrical Buyer-Supplier Relationships: The Influence of Relationship Characteristics on Small Shipping Companies' Decision-Making.
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| Abstract: | The goal of this research was to understand what strategic options are available to small shipping companies in an asymmetrical relationship with a powerful supplier, and how relationship characteristics influence these options. To reach this goal, a multiple case study of three shipping companies was conducted, focusing on the characteristics of the relationship with their dominant supplier. In this study, qualitative data was collected in the form of both semi-structured- and structured interviews. The data from semi-structured interviews were then analysed using a template analysis, while the structured interviews were analysed deductively. The results revealed that dyadic dependency, relationship closeness, and network dependency significantly influenced strategic decisions. It showed an ambiguous impact of dyadic dependency on strategic decisions within the dyad, where increased dependency could either decrease the likelihood of exiting the relationship or motivate an exit, depending on the degree of dependence. Secondly, while relationship closeness significantly influenced decisions regarding exiting the relationship, it had minimal impact on other strategic choices within the network, where the supplier's use of power was more important. Thirdly, high network dependency appeared to positively affect strategic options within the network, indicating that companies might pursue diversification and collaboration to mitigate the power of dominant suppliers, despite a limited amount of available alternatives. Lastly, the research highlighted the importance of considering external factors, such as regulations, in choosing strategic options. In conclusion, the study contributes to the literature by empirically demonstrating how relationship characteristics in power-imbalanced buyer-supplier relationships affect small companies' choice of strategic options. It offers practical insights for small businesses in similar situations by providing a model that visualises the links between relationship characteristics and strategic options. This can help companies evaluate their relationship with their powerful partner and navigate them by choosing strategic options. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/97834 |
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