A multi‐theoretic perspective on trust and power in strategic supply chains

TLDR

Strategic supply chains can provide firms with competitive advantage by fostering cultural competitiveness, joint entrepreneurship, and learning, while a balance of trust and power mitigates uncertainty and risk. The study examines four strategies firms employ to balance trust and power within strategic supply chains. These strategies include identifying an authority, creating a shared supply chain identity, leveraging boundary‑spanning ties, and ensuring procedural and interactive justice.

Abstract

Abstract Strategic supply chains serve as a potential source of competitive advantage for firms. The ability of a strategy supply chain to engender cultural competitiveness, or joint entrepreneurship and learning aimed at filling market gaps, is a key path through which a strategic supply chain may become a competitive advantage. A balance of trust and power within the supply chain offsets uncertainty and risks associated with the behaviors underlying cultural competitiveness. Using a multi‐theoretic perspective, we discuss four strategies that firms use to balance a climate of trust and power in a strategic supply chain. Identifying an authority, generating a common supply chain identity, utilizing boundary spanning ties, and providing procedural and interactive justice are the strategies we discuss.