Power in Supply Chain Management

Abstract

Power is a central yet underexplored element in supply chain relationships. In this introduction to the Special Topic Forum (STF), we provide a brief overview of key concepts underlying the current literature on power in supply chains. We then highlight open questions that we see at the forefront of the literature and explain how the five STF papers inform these developing research streams. We close by offering directions for future research on power in supply chains.

Supplier dependence and R&D intensity: The moderating role of network centrality and interconnectedness

“…As Gaimon et al (2017) argue, leading companies are actively engaging partners in supply chains to gain access to a breadth and depth of knowledge available outside of their boundaries. Researchers have echoed a call for empirical investigations of supplier dependence in a social network context, which is beyond the immediate buyer‐supplier dyad (Pemer and Skjolsvik, 2016; Reimann and Ketchen, 2017; Zhang et al, 2009). However, our understanding of the interplay between power‐driven relationships and network‐based activities remains vague.…”

“…We go beyond an immediate buyer‐supplier dyad by investigating how a firm's complex networks influence a power‐driven relationship. Such an approach could lead to a better understanding of why major customers refrain from using their power in a collaborative relationship and how power dynamics in a supply chain affect exchanges in social network relationships (Reimann and Ketchen, 2017). Third, this study theorizes and empirically confirms the importance of the context within which supplier dependence is associated with R&D intensity.…”

Supply Chain Power and Real Earnings Management: Stock Market Perceptions, Financial Performance Effects, and Implications for Suppliers

“…Research studies show that occupying a powerful position in a trading relationship generally enhances performance. However, such studies mainly focus on power in the contexts of innovation, collaboration, procurement, and “normal exchange situations” (Cox, Ireland, Lonsdale, Sanderson & Watson, ; Reimann & Ketchen, , p. 6; Terpend & Krause, ). Little attention has been given to complexities surrounding power, and instances in which power is exercised (Reimann & Ketchen, ).…”

“…Powerful SC firms use various bases of power (e.g., mediated and nonmediated) to influence suppliers’ actions and commitment (Chae, Choi & Hur, ; French & Raven, ; Maloni & Benton, ), thereby extracting favorable terms from their trading partners (Galbraith & Stiles, ; Kim, ). Recently, researchers have pointed out that our understanding of how and when firms use or restrain use of power is unclear (Reimann & Ketchen, ). Our study responds to Reimann and Ketchen's (, p. 6) call for research that examines conditions under which weaker SC members might be exploited.…”

“…Recently, researchers have pointed out that our understanding of how and when firms use or restrain use of power is unclear (Reimann & Ketchen, ). Our study responds to Reimann and Ketchen's (, p. 6) call for research that examines conditions under which weaker SC members might be exploited. We demonstrate that financial benefits of SC power extend beyond those realized in steady state operating conditions.…”