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Business relationship alignment: on the commensurability of value capture and mutuality in buyer and supplier exchange

Business relationship alignment: on the commensurability of value capture and mutuality in buyer... This paper argues that supply chain management sourcing strategies are unlikely to be implemented successfully by many organisations because of a lack of internal buy‐in and non‐conducive external power regime structures. Furthermore, the paper contends that many of those arguing the case for “win‐win” outcomes from buyer and supplier relationship management fail to properly define or conceptualise what the concept of mutuality means. The paper contends that mutuality and the search for value capture (profitability) are not fully commensurable in business relationships, but that, since “win‐win” is not an absolute but a variable concept, business relationships can be aligned even when unequal exchange and tension exists between buyers and suppliers. The paper also demonstrates that under some circumstances “win‐lose” can be a preferable outcome than “win‐win” for buyers and suppliers managing business relationships. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Supply Chain Management: An International Journal Emerald Publishing

Business relationship alignment: on the commensurability of value capture and mutuality in buyer and supplier exchange

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Publisher
Emerald Publishing
Copyright
Copyright © 2004 Emerald Group Publishing Limited. All rights reserved.
ISSN
1359-8546
DOI
10.1108/13598540410560793
Publisher site
See Article on Publisher Site

Abstract

This paper argues that supply chain management sourcing strategies are unlikely to be implemented successfully by many organisations because of a lack of internal buy‐in and non‐conducive external power regime structures. Furthermore, the paper contends that many of those arguing the case for “win‐win” outcomes from buyer and supplier relationship management fail to properly define or conceptualise what the concept of mutuality means. The paper contends that mutuality and the search for value capture (profitability) are not fully commensurable in business relationships, but that, since “win‐win” is not an absolute but a variable concept, business relationships can be aligned even when unequal exchange and tension exists between buyers and suppliers. The paper also demonstrates that under some circumstances “win‐lose” can be a preferable outcome than “win‐win” for buyers and suppliers managing business relationships.

Journal

Supply Chain Management: An International JournalEmerald Publishing

Published: Dec 1, 2004

Keywords: Buyer‐seller relationships; Sourcing; Business‐to‐business marketing

References