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Power and trust in supply chain collaboration
by Ramaswami Sridharan; Togar M. Simatupang
International Journal of Value Chain Management (IJVCM), Vol. 7, No. 1, 2013
Abstract: Previous research indicates that power and trust play a critical role in creating a mutual competitive advantage of collaboration. Very often chain members exercise power in an opportunistic way to appropriate value for themselves rather than creating better value. The goal of this paper is to scrutinise the roles of power and trust in collaboration through the intermediation of interaction mechanisms for value creation and appropriation. The methodology used in this study is to synthesize the concepts from relevant theories which acknowledge the interplay between power and trust in the process of value creation and appropriation. Propositions are drawn to explain the interplay of power and trust in formatting interaction mechanisms and how interaction mechanisms contribute to value creation and appropriation. This research provides a new insight into the roles of power and trust that facilitate chain members to pool their capabilities to create and appropriate value for customers and for themselves.
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