Buyer Dominated Relationships in a Supply Chain-A Case Study of Four Small-Sized Suppliers

Abstract

Maria Holmund Is a researcher at the swedish school of economics and buisness administration, Helsigfors, Finland, and Soren Kock is an associate professor at the swedish school of Economics and Business administration, Vasa, Finland, Partnership, Co-operation, and stretegic alliance are among treds that have emerged during the 1990s as outcomes of changes in the economic environment. Supply chain managment, thedynamics and interaction in the relationship between buyers and supplier have received increased attention. The relationship between buyer and suppliers, however, have often been categorised as balanced as the studied compaqnies have been more or less equal in size. In this study we have chosen to analyse supply relationship between a dominating buyer and four small supplier. The purpose of this paper is to analyse the buyer-supplier relationship in order to evaluate their stregth. The focus ha mainly been on the technical planning, knowledge, social and legal economica bonds that have emered over time.in the studies relationship these bonds, when present, have been found in a range from rather weak to strong. Moreover we belive resources needed by the buyer are pre-requisite for maintaining long-term relationslhip. the studied relationship can be regarged as stable and long-lasting as the yongest originated in 1983 and the oldest in 1971. the relationship were established more or less in the same years that small suppliers were founded.