Abstract

Purpose – This study investigates the issue of power in business-to-business relationships and
constitutes an appraisal of the theory relating to issues of supply chain relationships; in which the
received view from the relationship marketing literature with its emphasis on trust, dyadic symmetry
and mutuality is questioned. It is contended, alternatively that other types of relationships, for
example, those based on selfishness are equally relevant; and that power imbalanced business
relationships are just as important to the understanding of business exchange.
Design/methodology/approach – Specific reference is made to power relationships in vertical food
supply channels in the UK, where the majority of control lies in the hands of large multiple retailers.
The paper cites case material drawn from studies into the relationships between UK-based fresh food
supplier organisations and their principal customers, the leading UK food retailers.
Findings – Specific outcomes are determined with regard to issues of power, mutuality and the
nature of power-dependent relationships. Power play is omnipresent in exchange relationships and is
not always seen in a negative light. Relationship-building is perfectly possible in asymmetric
relationships and weaker parties are tolerant of power imbalance.
Research limitations/implications – The study concludes that power should be a central
consideration when concerned with business relationships and that imbalances in power are no
specific barrier to parties entering into relationships or to their success.
Practical implications – Findings from chosen case studies are transferable to other vertical
channel circumstances. Any future investigation should consider the expression and limits of power
and the boundaries of tolerance to power imbalance.
Originality/value – Provides evidence of the nature of power-dependent business relationships.