Consumer demand information as a re-balancing tool for power asymmetry between food retailers and suppliers

Titolo Rivista Economia agro-alimentare
Autori/Curatori Sheraz Alam Malik, Martin K. Hingley
Anno di pubblicazione 2021 Fascicolo 2021/2 Lingua Inglese
Numero pagine 20 P. 1-20 Dimensione file 0 KB
DOI 10.3280/ecag2-2021oa12283
Il DOI è il codice a barre della proprietà intellettuale: per saperne di più clicca qui

FrancoAngeli è membro della Publishers International Linking Association, Inc (PILA)associazione indipendente e non profit per facilitare (attraverso i servizi tecnologici implementati da CrossRef.org) l’accesso degli studiosi ai contenuti digitali nelle pubblicazioni professionali e scientifiche

This conceptual paper presents a model that may be used to redress the power balance between retailers and suppliers in the supply chain through better information symmetry and mutual dependence. It explores power dependence and resource dependence theories to conceptualise the use of demand information, by drawing on the diverse viewpoints within the extant literature on the effect of supply chain power asymmetry on exchange relationships and mutual dependence.Co-optation adds stability and reduces uncertainty through the exchange of resources. The dynamic nature of relationships and power between retailers and suppliers requires a multi-theory approach to identify a robust understanding of the interplay of different influence factors. This study has both operational and strategic implications for the food supply chain, as power asymmetry in relationships affects sustainability, especially in sales promotions periods for both retailers and suppliers.Improving power equilibrium between the buyer and supplier through information symmetry with the integration of power and resource dependence theory is novel.

Keywords:; Power dependence; Resource dependence; Demand information; UK; Supplier-retailer relationships

  1. Belaya, V. & Hanf, J.H. (2009). The two sides of power in business-to-business relationships: implications for supply chain management. The Marketing Review, 9(4), 361-381, DOI: 10.1362/146934709X479926
  2. Benton, W.C. & Maloni, M. (2005). The influence of power driven buyer/seller relationships on supply chain satisfaction. Journal of Operations Management, 23(1), 1-22, DOI: 10.1016/j.jom.2004.09.002
  3. Bogomolova, S., Szabo, M. & Kennedy, R. (2017). Retailers’ and manufacturers’ price-promotion decisions: Intuitive or evidence-based?. Journal of Business Research, 76, 189-200, DOI: 10.1016/j.jbusres.2016.05.020
  4. Bowman, A., Froud, J., Johal, S., Leaver, A. & Williams, K. (2013). Opportunist dealing in the UK pig meat supply chain: Trader mentalities and alternatives. Accounting Forum, 37(4), 300-314, DOI: 10.1016/j.accfor.2013.07.001
  5. Burt, S. & Sparks, L. (2003). E-commerce and the retail process: a review. Journal of Retailing and Consumer Services, 10(5), 275-286, DOI: 10.1016/S0969-6989(02)00062-0
  6. Caniëls, M.C. & Gelderman, C.J. (2007). Power and interdependence in buyersupplier relationships: A purchasing portfolio approach. Industrial Marketing Management, 36(2), 219-229, DOI: 10.1016/j.indmarman.2005.08.012
  7. Cannella, S. & Ciancimino, E. (2010). On the bullwhip avoidance phase: supply chain collaboration and order Smoothing. International Journal of Production Research, 48(22), 6739-6776, DOI: 10.1080/00207540903252308
  8. Chicksand, D. (2015). Partnerships: The role that power plays in shaping collaborative buyer-supplier exchanges. Industrial Marketing Management, 48, 121-139, DOI: 10.1016/j.indmarman.2015.03.019.
  9. Chung, J.E., Huang, Y., Jin, B. & Sternquist, B. (2011). The impact of market orientation on Chinese retailers’ channel relationships. Journal of Business and Industrial Marketing, 26(1), 14-25, DOI: 10.1108/08858621111097175
  10. Collins, A. & Burt, S. (2003). Market sanctions, monitoring and vertical coordination within retailer-manufacturer relationships: the case of retail brand suppliers. European Journal of Marketing, 37(5), 668-689, DOI: 10.1108/03090560310465080
  11. Cox, A. (2004a). The art of the possible: relationship management in power regimes and supply chains. Supply Chain Management: An International Journal, 9(5), 346-356, DOI: 10.1108/13598540410560739
  12. Cox, A. (2004b). Business relationship alignment: on the commensurability of value capture and mutuality in buyer and supplier exchange. Supply Chain Management: An International Journal, 9(5), 410-420, DOI: 10.1108/13598540410560793.
  13. Cox, A. & Chicksand, D. (2005). The limits of lean management thinking: Multiple retailers and food and farming supply chains. European Management Journal, 2(6), 648-662, DOI: 10.1016/j.emj.2005.10.010
  14. Croson, R. & Donohue, K. (2006). Behavioural causes of the bullwhip effect and the observed value of inventory information. Management Science, 52(3), 323-336, DOI: 10.1287/mnsc.1050.0436
  15. Davis, G.F. & Cobb, J.A. (2010). Resource dependence theory: Past and future”, Research in the Sociology of Organizations, 28(1), 21-42, DOI: 10.1108/S0733-558X(2010)0000028006
  16. Emerson, R. (1962). Power-Dependence Relations. American Sociological Association, 27(1), 31-41, DOI: 10.2307/2089716.
  17. Erturk, I., Froud, J., Johal, S., Leaver, A. & Williams, K. (2010). Ownership matters: private equity and the political division of ownership. Organization, 17(5), 543-561, DOI: 10.1177/1350508410372929
  18. Ettouzani, Y., Yates, N. & Mena, C. (2012). Examining retail on shelf availability: Promotional impact and a call for research. International Journal of Physical Distribution and Logistics Management, 42(3), 213-243, DOI: 10.1108/09600031211225945
  19. Fawcett, S.E., Fawcett, A.M., Watson, B.J. & Magnan, G.M. (2012). Peeking inside the black box: toward an understanding of supply chain collaboration dynamics. Journal of Supply Chain Management, 48(1), 44-72, DOI: 10.1111/j.1745-493X.2011.03241.x
  20. Felgate, M., Fearne, A., Di Falco, S. & Garcia Martinez, M. (2012). Using supermarket loyalty card data to analyse the impact of promotions. International journal of market research, 54(2), 221-240, DOI: 10.2501/IJMR-54-2-221-240
  21. Felgate, M. & Fearne, A. (2015). Analyzing the impact of supermarket promotions: a case study using tesco clubcard data in the UK. In The Sustainable Global Marketplace (pp. 471-475). Springer, Cham, DOI: 10.1007/978-3-319-10873-5_277
  22. Hillman, A.J., Withers, M.C. & Collins, B.J. (2009). Resource dependence theory: A review. Journal of management, 35(6), 1404-1427, DOI: 10.1177/0149206309343469
  23. Hingley, M. (2005a). Power imbalanced relationships: cases from UK fresh food supply. International Journal of Retail and Distribution Management, 33(8), 551-569, DOI: 10.1108/09590550510608368
  24. Hingley, M. (2005b). Power to all our friends? Living with an imbalance in supplierretailer relationships. Industrial Marketing Management, 34(8), 848-858, DOI: 10.1016/j.indmarman.2005.03.008
  25. Hingley, M., Angell, R. & Lindgreen, A. (2015). The current situation and future conceptualization of power in industrial markets, Special Issue on Power in Business, Customer and Market Relationships. Industrial Marketing Management, 48(July), 226-230, DOI: 10.1016/j.indmarman.2015.03.022
  26. Kähkönen, A.K. (2014). The influence of power position on the depth of collaboration Supply Chain Management: An International Journal, 19(1), 17-30 DOI: 10.1108/SCM-03- 2013-0079
  27. Kembro, J. & Näslund, D. (2014). Information sharing in supply chains, myth or reality? A critical analysis of empirical literature. International Journal of Physical Distribution and Logistics Management, 44(3), 179-200, DOI: 10.1108/IJPDLM-09-2012-0287
  28. Krolikowski, M. & Yuan, X., 2017. Friend or foe: Customer-supplier relationships and innovation. Journal of Business Research, 78, 53-68, DOI: 10.1016/j.jbusres.2017.04.023
  29. Kumar, G., Banerjee, R.N., Meena, P.L. & Ganguly, K. (2016). Collaborative culture and relationship strength roles in collaborative relationships: a supply chain perspective. Journal of Business & Industrial Marketing, 31(5), DOI: 10.1108/JBIM-12-2014-0254
  30. Kumar, N. (1996). The power of trust in manufacturer-retailer relationships. Harvard business review, 73 (Nov-Dec), 92-106.
  31. Li, S. & Lin, B. (2006). Accessing information sharing and information quality in supply chain management. Decision support systems, 42(3), 1641-1656, DOI: 10.1016/j.dss.2006.02.011
  32. Maglaras, G., Bourlakis, M. & Fotopoulos, C. (2015). Power-imbalanced relationships in the dyadic food chain: An empirical investigation of retailers’ commercial practices with suppliers. Industrial Marketing Management, 48, 187-201, DOI: 10.1016/j.indmarman.2015.03.014.
  33. Malik, S.A., Fearne, A. & O’Hanley, J., (2019). The use of disaggregated demand information to improve forecasts and stock allocation during sales promotions: a simulation and optimisation study using supermarket loyalty card data. International Journal of Value Chain Management, 10(4), 339-357, DOI: 10.1504/IJVCM.2019.103271
  34. Marcos, J. & Prior, D.D. (2017). Buyer-supplier relationship decline: A normsbased perspective. Journal of Business Research, 76, 14-23, DOI: 10.1016/j.jbusres.2017.03.005
  35. Nyaga, G.N., Lynch, D.F., Marshall, D. & Ambrose, E. (2013). Power asymmetry, adaptation and collaboration in dyadic relationships involving a powerful partner. Journal of Supply Chain Management, 49(3), 42-65, DOI: 10.1111/jscm.12011
  36. Pfeffer, J. (1981). Power in organisations. Marshfield, MA: Pitman.
  37. Pfeffer, J. & Leong, A. (1977). Resource allocations in United Funds: Examination of power and dependence. Social Forces, 55(3), 775-790, DOI: 10.1093/sf/55.3.775
  38. Pfeffer, J. & Salancik, G.R. (1978). The external control of organizations: A resource dependence perspective. New York: Harper and Row.
  39. Provan, K.G., Beyer, J.M. & Kruytbosch, C. (1980). Environmental linkages and power in resource-dependence relations between organizations. Administrative science quarterly, 25(2), 200-225, DOI: 10.2307/2392452
  40. Robson, I. & Rawnsley, V. (2001). Co-operation or coercion? Supplier networks and relationships in the UK food industry. Supply Chain Management: An International Journal, 6(1), 39-47, DOI: 10.1108/13598540110384279
  41. Rokkan, A.I. & Haugland, S.A. (2002). Developing relational exchange: effectiveness and power. European Journal of Marketing, 36(1), 211-230, DOI: 10.1108/03090560210412764
  42. Shen, L., Wang, Y. & Teng, W. (2017). The moderating effect of interdependence on contracts in achieving equity versus efficiency in interfirm relationships. Journal of Business Research, 78, 277-284, DOI: 10.1016/j.jbusres.2016.12.023.
  43. Svensson, G. (2001). Extending trust and mutual trust in business relationships towards a synchronised trust chain in marketing channels. Management Decision, 39(6), 431-440, DOI: 10.1108/00251740110397479
  44. Takashima, K. & Kim, C. (2016). The effectiveness of power-dependence management in retailing. International Journal of Retail & Distribution Management, 44(1), 71-88, DOI: 10.1108/IJRDM-03-2015-0039.
  45. Terpend, R. & Krause, D. (2015). Competition or Cooperation? Promoting Supplier Performance with Incentives Under Varying Conditions of Dependence. Journal of Supply Chain Management, 51(4), 29-53, DOI: 10.1111/jscm.12080
  46. Tsang, E.W. (1999). A preliminary typology of learning in international strategic alliances. Journal of World Business, 34(3), 211-229, DOI: 10.1016/S1090-9516(99)00016-4.
  47. Ulrich, D. & Barney, J.B. (1984). Perspectives in organizations: Resource dependence, efficiency, and population. Academy of Management Review, 9(3), 471-481, DOI: 10.5465/amr.1984.4279680
  48. Viitaharju, L. & Lähdesmäki, M. (2012). Antecedents of trust in asymmetrical business relationships: Differing perceptions between food producers and retailers. Marketing Intelligence and Planning, 30(5), 567-587, DOI: 10.1108/02634501211251061
  49. Wang, Y., Wang, N., Jiang, L., Yang, Z. & Cui, V. (2016). Managing relationships with power advantage buyers: The role of supplier initiated bonding tactics in long-term buyer–supplier collaborations. Journal of Business Research, 69(12), 5587-5596, DOI: 10.1016/j.jbusres.2016.03.066.
  50. Yu, Z., Yan, H. & Edwin Cheng, T.C. (2001). Benefits of information sharing with supply chain partnerships, Industrial management and Data systems, 101(3), 114-121, DOI: 10.1108/02635570110386625

Sheraz Alam Malik, Martin K. Hingley, Consumer demand information as a re-balancing tool for power asymmetry between food retailers and suppliers in "Economia agro-alimentare" 2/2021, pp 1-20, DOI: 10.3280/ecag2-2021oa12283