Measuring Asymmetrical Power Distribution in Supply Chain Networks: What Is the Appropriate Method?

The research topic of asymmetrical power relationships has been receiving increasingly more attention lately. However, only a few scientific works have studied power in the context of supply chain networks. Consisting of collaborative interactions among numerous firms, such networks possess a focal actor represented by a well-branded company. The other network actors are dependent on the focal company because of long-lasting explicit or implicit contracts. Hence, asymmetrical power relationships are observable. On one side, such asymmetry can lead to opportunism by the other network actors and can hinder the development of effective supply chain relationships. On the other side, power can be used by the focal actor as an effective tool in coordinating and promoting harmonious relationships, resolving conflicts, and, therefore, enhancing performance of the whole network and its individual members. In this context the aim of our work is to identify how capable existing power measurement efforts are of producing complete and objective measures. Considering the fact that power is a complex construct, fulfillment of our aim should provide an understanding of how strongly it is conceptualized and empirically tested. Thus, we review the literature on power measurement efforts undertaken in political, sociological, management, and marketing studies.

[1]  James E. Henderson,et al.  Power and Firm Profitability in Supply Chains: French Manufacturing Industry in 1993 , 1998 .

[2]  Walfried M. Lassar STRATEGY AND CONTROL 1IN SUPPLER DISTRIBUTOR RELATIONSHIPS, AN AGENCY PERSPECTIVIE , 1996 .

[3]  P. Bonacich Power and Centrality: A Family of Measures , 1987, American Journal of Sociology.

[4]  Michael Etgar,et al.  Channel Domination and Countervailing Power in Distributive Channels , 1976 .

[5]  Ellen Giebels,et al.  THE ALTERNATIVE NEGOTIATOR AS THE INVISIBLE THIRD AT THE TABLE: THE IMPACT OF POTENCY INFORMATION , 1998 .

[6]  K. Cook,et al.  The Distribution of Power in Exchange Networks: Theory and Experimental Results , 1983, American Journal of Sociology.

[7]  Gianni Lorenzoni,et al.  Creating a Strategic Center to Manage a Web of Partners , 1995 .

[8]  W. Bennis,et al.  The Social Psychology of Organizations , 1966 .

[9]  D. Mcclelland Power: The Inner Experience , 1975 .

[10]  Michael Etgar,et al.  Selection of an Effective Channel Control Mix , 1978 .

[11]  T. Hu,et al.  Relationships of channel power, noncoercive influence strategies, climate, and solidarity: A real case study of the Taiwanese PDA industry , 2005 .

[12]  Nirmalya Kumar,et al.  The power of power in supplier-retailer relationships , 2005 .

[13]  E. Lawler,et al.  Commitment in exchange relations : test of a theory of relational cohesion , 1996 .

[14]  Evert Gummesson,et al.  Total relationship marketing : from the 4Ps-product, price, promotion, place- of traditional marketing management to the 30Rs-the thirty relationships- of the new marketing paradigm , 1999 .

[15]  R. Dahl The concept of power , 2007 .

[16]  R. Gulati,et al.  STRATEGIC NETWORKS , 2000 .

[17]  Daniel J. Brass,et al.  POTENTIAL POWER AND POWER USE: AN INVESTIGATION OF STRUCTURE AND BEHAVIOR , 1993 .

[18]  J. W. Medcof Resource‐based strategy and managerial power in networks of internationally dispersed technology units , 2001 .

[19]  Joseph Whitmeyer Measuring Power in Exchange Networks , 2001 .

[20]  Robert F. Lusch,et al.  A Modified Model of Power in the Marketing Channel , 1982 .

[21]  Keith G. Provan,et al.  Environmental Linkages and Power in Resource-Dependence Relations between Organizations. , 1980 .

[22]  R. Kahn,et al.  The Social Psychology of Organizations , 1966 .

[23]  Robert Elias,et al.  Conflict and power , 1993 .

[24]  Robert N. Stern,et al.  The External Control of Organizations: A Resource Dependence Perspective. , 1979 .

[25]  R. Emerson Power-Dependence Relations , 1962, Power in Modern Societies.

[26]  J. Ivancevich An Analysis of Control, Bases of Control and Satisfaction in an Organizational Setting , 1970 .

[27]  James E. Stoddard,et al.  The Measurement of Influence Strategies in Distribution Channels , 2000 .

[28]  F. Robert Dwyer,et al.  Influence Strategies in Marketing Channels: Measures and Use in Different Relationship Structures , 1992 .

[29]  A. I. Rokkan,et al.  Developing relational exchange: Effectiveness and power , 2002 .

[30]  Shankar Ganesan Determinants of Long-Term Orientation in Buyer-Seller Relationships , 1994 .

[31]  J. Pfeffer,et al.  Who gets power — and how they hold on to it: A strategic-contingency model of power , 1977 .

[32]  Louis W. Stern,et al.  Power Measurement in the Distribution Channel , 1972 .

[33]  Gary L. Frazier On the Measurement of Interfirm Power in Channels of Distribution , 1983 .

[34]  Nermin Eyuboglu,et al.  Informational power: A means for increased control in channels of distribution , 1991 .

[35]  John Holloway Change the World Without Taking Power , 2002 .

[36]  B. Biddle The Analysis of Social Systems , 1979 .

[37]  Sandy D. Jap,et al.  Control Mechanisms and the Relationship Life Cycle: Implications for Safeguarding Specific Investments and Developing Commitment , 2000 .

[38]  P. Busch,et al.  The Sales Manager's Bases of Social Power and Influence upon the Sales Force: , 1980 .

[39]  Ronald S. Burt,et al.  Power in a social topology , 1977 .

[40]  John L. Swasy Measuring the Bases of Social Power , 1979 .

[41]  K. Provan Recognizing, Measuring, and Interpreting The Potential/Enacted Power Distinction In Organizational Research , 1980 .

[42]  P. M. Podsakoff,et al.  Effects of Withdrawal of a Performance-Contingent Reward on Supervisory Influence and Power , 1981 .

[43]  Robert E. Spekman Influence and Information: An Exploratory Investigation of the Boundary Role Person's Basis of Power , 1979 .

[44]  William R. Sherrard,et al.  Power Comparability---Its Contribution to a Theory of Firm Behavior , 1966 .

[45]  G. Owen,et al.  Characterizations of Network Power Measures , 2005 .

[46]  W. Ouchi,et al.  Organizational Control: Two Functions. , 1975 .

[47]  G. Palermo Economic Power and the Firm in New Institutional Economics: Two Conflicting Problems , 2000 .

[48]  Ian C. MacMillan,et al.  Strategy formulation : political concepts , 1978 .

[49]  L. H. Ketilson An examination of the use of legitimate power in marketing channels , 1991 .

[50]  Anthony T. Cobb,et al.  INFORMAL INFLUENCE IN THE FORMAL ORGANIZATION: PERCEIVED SOURCES OR POWER AMONG WORK UNIT PEERS , 1980 .

[51]  C. Mills,et al.  The Theory of Social and Economic Organization , 1948 .

[52]  D J Del Bueno,et al.  Power and politics in organizations. , 1986, Nursing outlook.

[53]  John R. Nevin,et al.  Power in a Channel of Distribution: Sources and Consequences , 1974 .

[54]  P. Blau Exchange and Power in Social Life , 1964 .

[55]  Nikolaos D. Hasanagas,et al.  Power Factor Typology Through Organizational and Network Analysis: Using environmental policy networks as an illustration , 2004 .

[56]  David Mechanic,et al.  Sources of Power of Lower Participants in Complex Organizations , 1962 .

[57]  Herbert A. Simon,et al.  Notes on the Observation and Measurement of Political Power , 1953, The Journal of Politics.

[58]  J. R. French,et al.  The bases of social power. , 1959 .

[59]  R. Bachmann Trust, Power and Control in Trans-Organizational Relations , 2001 .

[60]  E. Ogbonna,et al.  Inter-organizational power relations in the UK grocery Industry: contradictions and developments , 1996 .

[61]  G. Sharp,et al.  Social Power and Political Freedom. , 1978 .

[62]  Tomoaki Sakano,et al.  The Exercise of Interfirm Power and Its Repercussions in U.S.-Japanese Channel Relationships , 1993 .

[63]  S. Helper How much has realliy changed between U.S. automakers and their suppliers , 1991 .

[64]  Harold F. Koenig,et al.  Measuring the sources of marketing channel power: A comparison of alternative approaches☆ , 1995 .

[65]  Thomas R. Dye,et al.  Power and Society , 2008 .

[66]  K. Provan,et al.  Interorganizational Dependence and Control as Predictors of Opportunism in Dealer-Supplier Relations , 1989 .

[67]  Michael E. Porter,et al.  Consumer Behavior, Retailer Power and Market Performance in Consumer Goods Industries , 1974 .

[68]  R. Lusch Sources of Power: Their Impact on Intrachannel Conflict , 1976 .

[69]  A. T. Parsons,et al.  On the Concept of Political Power , 2008 .

[70]  M. Smith Field Theory in Social Science: Selected Theoretical Papers. , 1951 .

[71]  P. V. Beek,et al.  Innovations in logistics and ICT in food supply chain networks , 2005 .

[72]  Gary L. Frazier Interorganizational Exchange Behavior in Marketing Channels: A Broadened Perspective , 1983 .

[73]  T. Mitchell,et al.  PATH-GOAL THEORY OF LEADERSHIP , 1975 .

[74]  John O. Summers,et al.  Interfirm Influence Strategies and Their Application within Distribution Channels , 1984 .

[75]  R. J. House,et al.  A Path-Goal Theory of Leader Effectiveness , 1971 .

[76]  R. Gulati,et al.  Dependence Asymmetry and Joint Dependence in Interorganizational Relationships: Effects of Embeddedness on a Manufacturer's Performance in Procurement Relationships , 2007 .

[77]  John O. Summers,et al.  Perceptions of Interfirm Power and its use within a Franchise Channel of Distribution , 1986 .

[78]  P. H. Beves EQUALITY , 1977, The Lancet.

[79]  J. Stanfield,et al.  Governance and the legitimacy of Corporate Power: A Path for Convergence of Heterodox Economics? , 2004 .

[80]  Morgan P. Miles,et al.  Win‐Win? The Paradox of Value and Interests in Business Relationships , 2007 .

[81]  Richard E. Farson,et al.  ANALYSIS OF SOCIAL POWER. , 1965 .

[82]  F. Glen The social psychology of organizations , 1976 .

[83]  Santiago Sánchez Pagés Conflict and Power , 2003, Brave Talk.