The art of the possible: relationship management in power regimes and supply chains

TLDR

Understanding the power regime in supply chains is essential for buyers and suppliers to determine appropriate relationship management strategies. The paper proposes a power‑regime perspective on sourcing and relationship management, emphasizing the art of the possible and the need for managers to develop context‑appropriate sourcing relationships. The authors argue that buyers and suppliers must grasp the five sourcing choices and the power dynamics between them to assess appropriateness.

Abstract

This paper outlines the general theoretical approach adopted in the power regime perspective on sourcing and relationship management. The paper focuses on the art of the possible. This means that managers have to develop sourcing relationships that are appropriate given the circumstances in which they find themselves. To understand appropriateness it is argued that buyers and suppliers must understand the five sourcing choices available and the power circumstances that exist between them in supply chain networks. Only by understanding the power regime that exists can buyers and suppliers fully understand what is the appropriate way for them to manage relationships.