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Buyer’s dependence in value creating supplier relationships

Anni-Kaisa Kähkönen (School of Business, Lappeenranta University of Technology, Lappeenranta, Finland)
Katrina Lintukangas (School of Business, Lappeenranta University of Technology, Lappeenranta, Finland)
Jukka Hallikas (School of Business, Lappeenranta University of Technology, Lappeenranta, Finland)

Supply Chain Management

ISSN: 1359-8546

Article publication date: 9 March 2015

Abstract

Purpose

The purpose of this paper is to examine what kind of supplier relationship management activities can be seen as value-creating activities and how those might affect the buyer’s dependence on its suppliers. Power and dependence provide specific insights into the supplier relationship management and value creation in supply chains.

Design/methodology/approach

The study utilizes a survey data with 165 cases collected in Finland. The concepts are tested by means of regression analysis.

Findings

The findings of the study indicate that the value-creating activities of inter-firm learning and early supplier involvement increase buyer’s dependence, but a supplier orientation does not have similar effects.

Practical implications

The results have implications for supply chain managers and practitioners in terms of shedding light on the approaches of dependence and value creation at the same time. Managers need to understand the factors that create dependence, but which also have a substantial influence on value creation in supply chains and networks.

Originality/value

The literature review reveals that the supply chain situations in which the supplier is strategically important and its role in the value-creation process is significant, and when the buyer is dependent on the supplier, have rarely been discussed. Moreover, by focusing on the supplier relationship management activities that can be seen as value-creating activities and by combining this to the dependence perspective, this study aims to narrow the research gap identified from the previous research.

Keywords

Citation

Kähkönen, A.-K., Lintukangas, K. and Hallikas, J. (2015), "Buyer’s dependence in value creating supplier relationships", Supply Chain Management, Vol. 20 No. 2, pp. 151-162. https://doi.org/10.1108/SCM-02-2014-0062

Publisher

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Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited