Power Dynamics in Supply Chain Relationships
Summary
Power dynamics within supply chains shape interactions between buyers, suppliers and intermediary actors through the distribution and exercise of influence over resources, information and decision making. Such dynamics often reflect imbalances in bargaining strength, leading to power asymmetries that influence pricing, service levels, innovation and sustainability. Theoretical perspectives including resource-dependence theory and power-dependence theory have been applied to examine how control of critical inputs or information generates leverage, obliges dependent parties to concede terms and motivates strategic responses such as relational governance, buffering or alliance formation. Recent advances have highlighted the interplay between power and trust, the role of identity constructs in collaboration, and the impact of digitalisation on power allocation across global networks. Understanding these mechanisms is crucial for practitioners seeking to foster resilience, equitable value distribution and ethical conduct in increasingly complex and interconnected supply chains.
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Power Dynamics in Supply Chain Relationships publication trend
The graph below shows the total number of articles in power dynamics in supply chain relationships across all publications each year (not limited to Nature Index journals).
Technical terms
Power asymmetry: An imbalance in the control of resources or decision-making authority between supply chain actors.
Coercive power: The ability of an actor to impose sanctions or penalties to influence another party.
Expert power: Influence derived from specialised knowledge or technical expertise.
Intergroup relational identity: A shared identity construct that acknowledges distinct group identities within collaborative partnerships.
Digitalisation: The integration of digital technologies and data analytics into supply chain operations and governance.
Modal shift: The process of transitioning goods transport from one mode (e.g. road) to another (e.g. rail or maritime) for efficiency or sustainability goals.
References
- How to not lose oneself: the case for relational identity in collaborative supply relationships. International Journal of Physical Distribution & Logistics Management (2023).
- The Influence of Power and Trust on the Initiation and Duration of Modal Shift Solutions. Sustainability (2021).
- Power in the Context of SCM and Supply Chain Digitalization: An Overview from a Literature Review. Logistics (2022).
- The interplay between power structure and decision-making in supply chains: A systematic review. Journal of Supply Chain Management Science (2021).
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