Power, Leverage and the Strategic Purposes of Business Relationships

Having discussed the strengths and weaknesses of the current literature this chapter introduces the conditions that must be in place for successful relationship alignment under changing circumstances of buyer and supplier power. The analysis attempts to provide a holistic account by focusing on the relationship from the perspective of the buyer as well as the supplier. Unlike some previous analyses the approach outlined here starts from the view that there is no one best way for buyers or suppliers to manage business relationships. Although there may be ideal positions for both the buyer and supplier, how any organisation should manage a business relationship in practice depends on the circumstance it is in. This means that buyers and suppliers often have to manage business relationships in circumstances that are far from ideal.