Power, Leverage and the Strategic Purposes of Business Relationships

Andrew Cox, Chris Lonsdale, Joe Sanderson and Glyn Watson
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Andrew Cox: University of Birmingham
Chris Lonsdale: Birmingham Business School
Joe Sanderson: Birmingham Business School
Glyn Watson: Birmingham Business School

Chapter 2 in Business Relationships for Competitive Advantage, 2004, pp 32-51 from Palgrave Macmillan

Abstract: Abstract Having discussed the strengths and weaknesses of the current literature this chapter introduces the conditions that must be in place for successful relationship alignment under changing circumstances of buyer and supplier power. The analysis attempts to provide a holistic account by focusing on the relationship from the perspective of the buyer as well as the supplier. Unlike some previous analyses the approach outlined here starts from the view that there is no one best way for buyers or suppliers to manage business relationships. Although there may be ideal positions for both the buyer and supplier, how any organisation should manage a business relationship in practice depends on the circumstance it is in. This means that buyers and suppliers often have to manage business relationships in circumstances that are far from ideal.

Keywords: Normal Return; Exchange Relationship; Business Relationship; Exchange Cost; Power Matrix (search for similar items in EconPapers)
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-50919-1_2

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DOI: 10.1057/9780230509191_2

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