Some theoretical foundations of Supply Chain Management and Supply Networks: the role of social networks in selecting partners

Authors: Tuija-Liisa Pohja

The past years have illustrated a shift in focus from transactional to relational exchange. In supply chain,this is highlighted by the fact that partnerships and alliance relationships are a prevalent topic ofdiscussion. Focusing on integration is an important step toward a better understanding of the criticaldimensions of supplier relationships. The desired outcome is a win-win relationship, where both partiesbenefit. Long-term strategic alliances are developed with a small group of suppliers. Successful SupplyChain Management (SCM) requires a change from managing individual functions to integrating activitiesinto key supply chain processes. However, traditional SCM applications fall short when it comes tohelping manufacturers manage one critical element, their relationships with suppliers. A firm’s socialconnections guide its interest in new partners and provide it with opportunities. This interest is closelyrooted in the processes that underlie a firm’s entry into new partnership. Many opportunities forpartnerships can be presented to firms through their existing sets of partners is not only economical butalso technical and social.

Journal: ( – )

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Publish Year: 2004

Conference: Copenhagen, Denmark (2004)