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• W57943982 abstract "Abstract. Since many decades there is discussion going on about positive and negative sides of power in supply chains. The main two areas of supply chain management are cooperation (aligning interests) and coordination (aligning actions), which should be addressed separately. We posit that power can be considered one of the strongest and influential tools for supply chain management. Therefore, there is a challenge to find out what power is in general and how different types of power can be exercised through different means in supply chains for managerial and business purposes with specific attention to cooperation and coordination issues. To answer our research questions we conducted over 40 interviews with experts in the field of Russian agrifood business.Keywords: power, management, coordination, cooperation, Russian agri-food business.1. Introduction and research aimWorldwide a group of global players with enormous power has emerged among food manufacturers and food retailers. Since market opportunities in their saturated home markets are often not as favourable as in transition or developing markets, it is observable that these giants internationalize or globalize their businesses (Lyson and Lewis Raymer, 2000; Fernie et al., 2006; Hanf and Dautzenberg, 2009). When these powerful food retailers and processors enter a new country they face the challenge to build up their procurement and distribution systems. Often one observes that in these cases such companies 'export' their business models or supply chain management concepts from home that are based on two main areas of interest: cooperation and coordination (Hanf and Piniadz, 2007; Belaya et al., 2012).Cooperation within the supply chain network is based on the individual motivation of its actors. It is resolved by aligning interests through formal mechanisms such as contracting (where possible) (Williamson, 1975). Informal mechanisms such as identification and embeddedness may also serve to align interests (Granovetter, 1985; Gulati, 1995; Gulati and Sytch, 2007; Kogut and Zander, 1996). Since cooperation is not always purely voluntary, powerful focal companies have a major impact on how collaboration is practiced along the chain. Some supply chain actors may be forced to participate; others are not fully supportive of the idea to cooperate or desire more influence or support in the collaboration process. There appears to be a spectrum of collaborative relationships between forced participation and equal matching. Ideally the relationship should be based on equal matching (Kampstra et al., 2006). That is why the focal actor managing the whole supply chain network should use its power to align the interests of individual entities and stimulate active cooperation among the actors.Solving the problems of cooperation, however, does not automatically help to achieve coordination (Gulati and Singh, 1998). A supply chain network requires a great deal of coordination among the partners and these can only be efficiently aligned by a sophisticated management concept (Bogaschewsky, 1995). Whereas cooperation problems are rooted in motivation, coordination problems arise due to the limitations of participating actors that hinder them from possessing comprehensive knowledge of how others will behave in situations of interdependence. Problems of coordination emerge due to the lack of shared and accurate knowledge about the decision rules that others are likely to use and how one's own actions are interdependent with those of others (Geanakoplos, 1992; Milgrom and Roberts, 1992). Coordination problems are situations in which one does not know which decision aligns best with other decisions in the chain or network. Various solutions for coordination problems have been formulated in a two-party context, like setting prices or quantities (income rights), organization/centralization (decision rights), regular meetings, installing information and communication technologies. …" @default.
• W57943982 created "2016-06-24" @default.
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• W57943982 date "2013-01-01" @default.
• W57943982 modified "2023-09-24" @default.
• W57943982 title "Using Power in Business Relationships - Old Wine in New Skins?" @default.
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