Dependence in Buyer-Supplier Relationships

When Hassan, the chef of the new Indian restaurant Maison Mumbai, visits the local market one morning, he finds none of the products he needs on the stalls. In order to hamper Hassan, her new competitor, Madame Mallory, owner of a Michelin-starred restaurant, also went to the market to deliberately buy the entire stock of fish, vegetables and ingredients of superior quality. Hassan, who is just preparing for Maison Mumbai’s grand opening night, is under pressure to get hold of the ingredients he still needs.

The industrial marketing literature frequently points to dependence in buyer–supplier relationships (BSRs) as an essential construct in understanding the development of strong, long-lasting partnerships. Although the antecedents of dependence have been discussed, extant research lacks an understanding of the explanatory mechanisms of how dependence – or even lock-in situations – actually evolve. In this article, we examine the emergence of these aspects in BSRs by analyzing the example of a logistics outsourcing relationship. Using a grounded theory approach in a real-life case involving a German mechanical engineering company and its service provider, we identify four interrelated mechanisms (convincing, tying, complementing and lock-in) that explain dependence and lock-in from a buyer’s perspective. Based on our empirical findings, we develop a conceptual model that points to the theoretical importance of the interconnected influences and sub-processes between transactional, mental, and operative bonding effects. Our results inform managerial practice on how to plan and manage BSRs. The model enhances existing research on dependence in BSRs and can serve as a starting point for further investigations into buyersupplier dependence (BSD) and lock-in in dyadic business relationships.

Dependence is considered to be a key relational construct in buyer–supplier relationships. Existing research has highlighted its impact on dyads and suggested strategic recommendations regarding how to cope with buyer–supplier dependencies (BSD). However, these recommendations seem to be contradictory, as some scholars recommend dependence avoidance while others promote its strategic value for the partners involved. The present paper argues that the decision on which strategic measure is the best choice in individual dependence situations depends on the specific type of BSD. The paper builds on resource-dependence theory (RDT) and the relational view (RV) to discuss four groups of dependence management strategies and their fit to eight characteristic forms of BSD, which are derived in detail. Afterwards, strategies are allocated to specific dependence forms. Thereby, this conceptual study contributes in two areas: it incorporates RDT and RV into the discussion on BSRs, and it also suggests a comprehensive typology of dependence situations, which serves as a basis for future research in the domain. Finally, the paper proposes an organized picture of dependence management strategies for practitioners.

BSD is a prevailing topic for both academics and practitioners. Its relevance is mirrored in the uninterrupted high number of publications in the last decades. Besides, managers who are active in BSRs as a supplier or a buyer report on the actuality and meaning of this issue in their daily activities.