Managing appropriately in power regimes: relationship and performance management in 12 supply chain cases

Abstract

This paper reports the findings of a two‐year EPSRC funded research project into relationship and performance strategies in power regimes. The findings from 12 very different industrial and service sector cases studies demonstrate that there is a correlation between the ability to improve the performance of suppliers and the power circumstances that exist between the buyers and suppliers. Buyers appear to be able to achieve improved performance from suppliers in situations of buyer dominance or interdependence. The research also demonstrates that whatever the objective power circumstance managers often subjectively misperceive the appropriate sourcing choices available to them. As a result business relationships can be aligned, but they are often misaligned. Furthermore, misaligned relationships may be "remediable" but they may not.