Suppliers' control over category management in Finnish and Swedish supplier–retailer relationships Online publication date: Thu, 28-May-2009
by Arto Lindblom, Rami Olkkonen, Petri Ollila, Saara Hyvonen
International Journal of Integrated Supply Management (IJISM), Vol. 5, No. 1, 2009
Abstract: The present study analyses suppliers' control over Category Management (CM) decision making in Finnish and Swedish supplier–retailer relationships. A quantitative survey among 90 Finnish and 116 Swedish suppliers of fast-moving consumer goods was conducted. Both Finnish and Swedish suppliers believe that retailers are clearly in charge of CM tactics. Suppliers apparently have most influence over in-store promotions and least influence over pricing. In the Finnish context, the extent of power seems to be dependent on the market position of a given supplier, whereas in the Swedish context the suppliers' market position did not seem to affect the extent of control as strongly as in Finland. The most important origins of control over CM tactics were non-coercive in nature. The study suggests that suppliers who wish to gain some control over CM tactics should base their interaction with retailers on expertise and issues related to referent power bases.
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