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Power in distribution channels : Supplier assortment strategy for balancing power

Power in distribution channels : Supplier assortment strategy for balancing power

Authors :
Rehme, Jakob
Nordigården, Daniel
Ellström, Daniel
Chicksand, Daniel
Rehme, Jakob
Nordigården, Daniel
Ellström, Daniel
Chicksand, Daniel
Publication Year :
2016

Abstract

This paper focuses on the move from buyer dominance toward interdependence between buyers and suppliers in a distribution channel. The paper introduces a case study collected through in-depth interviews and participative observations. It examines the relationships between a timber supplier and its customers in the builders’ merchants sector. We stress the relevance of considering actions intended to change the power balance, rather than focusing only on trust. The power balance in a dyadic relationship is dynamic, and power positions need to be constantly re-evaluated. An important power resource is information asymmetry, manifested in the supplier’s information about: products, regional and local demand, and the usage of the products. For practitioners, we highlight the possibility of exerting a non-coercive power resource, such as information asymmetry, in order to increase the relative power. Furthermore, being open about the power position between a buyer and a seller can foster a more efficient collaboration.

Details

Database :
OAIster
Notes :
application/pdf, English
Publication Type :
Electronic Resource
Accession number :
edsoai.on1233524902
Document Type :
Electronic Resource
Full Text :
https://doi.org/10.1016.j.indmarman.2015.07.007