Measuring Asymmetrical Power Distribution in Supply Chain Networks: What Is the Appropriate Method?

Abstract

The research topic of asymmetrical power relationships has been receiving increasingly more attention lately. However, only a few scientific works have studied power in the context of supply chain networks. Consisting of collaborative interactions among numerous firms, such networks possess a focal actor represented by a well-branded company. The other network actors are dependent on the focal company because of long-lasting explicit or implicit contracts. Hence, asymmetrical power relationships are observable. On one side, such asymmetry can lead to opportunism by the other network actors and can hinder the development of effective supply chain relationships. On the other side, power can be used by the focal actor as an effective tool in coordinating and promoting harmonious relationships, resolving conflicts, and, therefore, enhancing performance of the whole network and its individual members. In this context the aim of our work is to identify how capable existing power measurement efforts are of producing complete and objective measures. Considering the fact that power is a complex construct, fulfillment of our aim should provide an understanding of how strongly it is conceptualized and empirically tested. Thus, we review the literature on power measurement efforts undertaken in political, sociological, management, and marketing studies.

KEYWORDS:

• power asymmetry
• power measurement
• supply chain networks