Title: Power and trust in supply chain collaboration

Authors: Ramaswami Sridharan; Togar M. Simatupang

Addresses: Newcastle Business School, Faculty of Business and Law, University of Newcastle, Callaghan, NSW 2308, Australia ' School of Business and Management, Bandung Institute of Technology, 10 Ganesha St., Bandung 40132, Indonesia

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.

Keywords: collaborative supply chains; power; trust; value creation; value appropriation; supply chain management; SCM; supply chain collaboration.

DOI: 10.1504/IJVCM.2013.057344

International Journal of Value Chain Management, 2013 Vol.7 No.1, pp.76 - 96

Published online: 24 Jul 2014 *

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