A Balance Theory Perspective of Triadic Supply Chain Relationships

Abstract

Although most supply chains involve three or more members among source, make, and delivery operations of a firm, as well as suppliers and customers, most of the research on multi-member systems has examined the pair-wise relationships between two adjacent members. The purpose of this study is to provide a more holistic understanding of multi-member relationships such as those within a supply chain. This is achieved by applying Heider’s Balance Theory for triadic systems to a simulated three-member distribution channel using student subjects. The results of this empirical investigation support our hypotheses and we offer insights on how managerial actions within each linkage of the supply chain impact their firm’s satisfaction with the multi-member system as a whole.

Additional information

Notes on contributors

Joan M. Phillips

Joan M. Phillips (Ph.D., University of Illinois at Urbana-Champaign) is an Assistant Professor of Marketing in the Gatton College of Business and Economics at the University of Kentucky. Her research interests include channel relationships, sales, and new product introductions.

Ben S. Lin

Ben S. Liu (Ph.D.,State University of New York at Buffalo) is an assistant professor of marketing in the Department of Business Administration at the University of Illinois at Urbana-Champaign. His research interests include channel relationships, negotiation strategies, and new product development.

Thomas G. Costello

Thomas G. Costello is a doctoral student in the Department of Business Administration at the University of Illinois at Urbana-Champaign. His research interests include channel relationships, product usage, and buyer and consumer behavior.