Title: Strategic warning: powerful buyers can seriously damage organisational health

Authors: Marie McHugh, Chris Brotherton

Addresses: School of Management, University of Ulster, Shore Road, Newtownabbey, Co Antrim BT37 0QB, UK. Department of Applied Psychology, Heriot-Watt University, Riccarton, Edinburgh, EH14 4AS, UK

Abstract: Recent research has emphasised the need for organisations to move towards closer cooperation in their buyer-supplier relationship. The decision to engage in partnership arrangements is one that has major implications for buyers and suppliers. This article explores the challenges presented in developing a close, cooperative and mutually beneficial trading relationship between a buyer and supplier, where one partner, the buyer, is in a powerful position. Using evidence from a case study, it is argued that powerful buyers can seriously damage organisational health.

Keywords: organisational health; buyers; suppliers; decision-making; partnerships; strategic management; employee involvement.

DOI: 10.1504/IJMDM.2000.001211

International Journal of Management and Decision Making, 2000 Vol.1 No.1, pp.28-43

Published online: 01 Jul 2003 *

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