The effectiveness of power-dependence management in retailing
International Journal of Retail & Distribution Management
Article publication date: 11 January 2016
The purpose of this paper is to investigate retailers’ power-dependence management through the lens of supply chain diversification, and explore how it is linked to their logistic arrangements in managing suppliers and their retail performance.
Hypotheses are tested using a structural equation modelling based on survey data from 186 merchandising division heads at Japanese retail companies.
The results reveal that quick-response inventory replenishment is positively related to retailers’ use of power-dependence management. This management practice leads to enhanced retail competitiveness and, thus, higher sales growth in supply chain relationships.
This study contributes to understanding how retailers’ logistic arrangements work by modelling power relations within supply chains, drawing on power-dependence theory. The authors propose an alternative view of logistics systems to that of the widely adopted transaction cost theory. The authors find that supplier investments in quick-response inventory management may not be a relationship-specific asset.
Takashima, K. and Kim, C. (2016), "The effectiveness of power-dependence management in retailing", International Journal of Retail & Distribution Management, Vol. 44 No. 1, pp. 71-88. https://doi.org/10.1108/IJRDM-03-2015-0039
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