Authors: Cees J. Gelderman; Herman T. A. E. Laeven
This paper explores the differences in buyer-supplier relationships based on competition and relationsbased on cooperation for a typical leverage product: electricity. These differences are investigatedthrough a comparative analysis of two sets of four case studies. In contrast to insights from earlierstudies, the observed differences were unrelated to the expected benefits and to power anddependence in the buyer-supplier relationship. The study did reveal differences with respect to anumber of relationship and transaction attributes, corroborating earlier studies. Compared to thecompetitive buyer-supplier relationships, the cooperative relationships were characterised by a moreflexible division of labour, more mutual objectives and values, more trust in the supplier, moreinformation exchange, and more tailor-made contracts. The respondents all expressed their concernfor the extreme price fluctuations on the electricity market. The preference for either competition orcooperation seems to be based on the believes that either tough negotiation or a more relationalapproach would be the best solution for managing price risks. A (supposed) lack of competitionbetween suppliers in the electricity market has been mentioned too as a factor, which may result in apreference for ‘cooperation’ with a supplier.Keywords: competition, cooperation, buyer-supplier relationships, leverage items, purchasing portfolio
Journal: ( – )
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Publish Year: 2004
Conference: Copenhagen, Denmark (2004)