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

Author: Andrew Cox

Source: Supply Chain Management: An International Journal, Volume 9, Number 5, 2004 , pp. 410-420(11)

Publisher: Emerald Group Publishing Limited

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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.

Keywords: Buyer-Seller Relationships; Sourcing; Business-To-Business Marketing

Document Type: Research article

DOI: http://dx.doi.org/10.1108/13598540410560793

Publication date: 2004-05-01