Buyer-Supplier Relationships and Power Position: Interchaning

Abstract

According to several studies, power and interdependence play a considerable role in understanding the buyer–supplier relationships, yet, empirical research is still limited. Also, the nature of the buyer-supplier relationship and managing them might vary based on the power position of buyers and suppliers. Few studies focused on the reason behind this interrelation and strong influence of power on the buyer-supplier relationships. Thus, the purpose of this study is to gain better understanding and try to identify how power position and buyer-supplier relationships are interrelated, and whether there are common determinants and/or characteristics behind this strong bond between the two concepts. Both transaction cost analysis theory and social exchange theory were integrated in building the argument. Regarding the methodology, qualitative exploratory research design was employed by using multiple-case study as the main research method, where three multinational Egyptian organizations were selected. Moreover, data was collected using individual in-depth interviews, and analyzed through coding and cross case analysis techniques. The results showed that there are common factors that influence both buyer-supplier relationship characteristics and power position attributes. And according, the findings helped in pointing out a new lens of discussing and investigating the bond between buyer-supplier relationships ad power in research.