Drivers of bargaining structure and empirical implications of the hierarchy strategy

While the last chapter showed that bargaining structure should matter for value capture, the present chapter examines the drivers of bargaining structures with an aim to understand if and how firms use them. As the position of a firm in the bargaining structure and the degree of hierarchy affects the share of value captured, firms should seek to influence the bargaining structure to their own advantage. However, it remains to be discussed whether firms actively shape the bargaining structure, which levers they apply, and if their action is in line with the hierarchy strategy. In an attempt to answer these questions I use a qualitative research approach with case studies examining the value chains and bargaining structures of laundry dryers produced by Bosch Siemens Hausgeräte GmbH (BSH) and of large passenger aircrafts, in particular the Airbus A350 and the Boeing 787 Dreamliner.