Managing supply chain relations has evolved over a decade and many companies have given importance to regulate their relations in supply chain relations to stay competitive in the market. In this context of adjusting relations among supply chain members, central point of discussion is the role of power. Power can be a component that persuades one member of supply chain to do certain things that he/she wouldn’t agree on doing it voluntarily. The implication of that power among supply chain members is called as power relations. These power relations between the supply chain members need to be sustained under circumstances of whether the power is balanced or not balanced between the two actors. The key research questions are formulated as followed,
In order to answer these questions, structured literature review was conducted. The conceptual model to sustain the supply chain relations included four main components that were cost, transparency, reliability and flexibility. Interviews were conducted in three companies located in Sweden, Turkey and India. The company profiles regarding to power relations in this dyadic relationship were the main concern. The three cases tested were supplier dominancy, mutual dependency and subordinate buyer. In this thesis, we accomplished how supply chain members sustained their relations under the influence of power practices among supply chain members.
We concluded our thesis study, showing the inter-connection in between these four elements to enable the sustainability of power relations. Moreover, we inferred that even though power seems to be a negative concept, the companies are able to maintain their power relations through awareness of existing power. In addition to that, the companies don’t give equal importance to each four elements though each element is present to maintain the power relations in their dyadic supply chain relationship.