The two sides of power in business-to-business relationships: implications for supply chain management

Power, one of the key elements of business-to-business relationships, has been viewed from two standpoints – good and evil. Because supply chain management consists of both alignment of interests (cooperation) and alignment of actions (coordination), we assume that both sides of power can be used effectively to manage supply chain networks. We look at both views presented in the literature – positive and negative – and present a conceptual framework on how the different aspects of power can be used as mechanisms for chain management. Our goal is to develop a strategy that enables supply chain managers to select an effective mix of power mechanisms. Using literature review we develop a conceptual framework of how these two sides of power affect supply chain management with specific attention to coordination and cooperation issues, and how power can be used as a tool for supply chain management.