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Supply Chain Power Configurations and Their Relationship with Performance
Author(s) -
Huo Baofeng,
Flynn Barbara B.,
Zhao Xiande
Publication year - 2017
Publication title -
journal of supply chain management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.75
H-Index - 92
eISSN - 1745-493X
pISSN - 1523-2409
DOI - 10.1111/jscm.12139
Subject(s) - asymmetry , embeddedness , resource dependence theory , upstream (networking) , power (physics) , downstream (manufacturing) , industrial organization , differential (mechanical device) , business , computer science , economics , marketing , microeconomics , telecommunications , physics , sociology , anthropology , thermodynamics , quantum mechanics
To lay the foundation for the study of supply chain power, we study power configurations at the level of interlocking power dyads ( IPD s), viewing the simultaneous effect of upstream and downstream power. We build on four key constructs: dependence asymmetry (resource dependence theory), joint dependence (embeddedness perspective), power type differential (based on French & Raven, 1959), and power source asymmetry. We examine the research question of what the relationship is between IPD s and the focal firm's operational performance, developing hypotheses based on the dependence asymmetry, joint dependence, power type differential, and power source asymmetry of theoretical IPD s. A survey of over 600 respondents in China was used to collect data on focal firm perceptions of upstream and downstream power, with cluster analysis yielding eight IPD s. Inferential analysis revealed the importance of joint dependence, dependence asymmetry, power type differential, and power source asymmetry to the operational performance of the focal firm.