Evolution of inter-firm relationships: A study of supplier-logistical services provider-customer triads

Abstract

The concept of supply chain management has evolved from focussing initially on functional co-ordination within an organisation, then to external dyadic integration with suppliers and customers and more recently towards a holistic network perspective. The focus of the research described in this paper is to explore how and why relationships within supply chain networks change over time. Since a triad is the simplest meaningful sub-set of a network, we use triads as the unit of analysis in our research. In particular, we consider triads consisting of a supplier, their customer, and the associated logistics services provider. An evolutionary triadic model with eight relational states is proposed and the evolutionary paths between the states hypothesised, based on balance theory. The fundamental role of logistical service providers is examined within these alternative triadic states with a specific focus on the relationships between the actors in the triad. Empirical evidence is collected from three very different triads and cross-referenced with our proposed model. How the interactions and relationships change over time is the central focus of the case studies and the conceptual model. Our findings indicate that some networks are more stable than others and depending on their position in a triad some actors can gain power over their business partners. Further, those organisations that act as information conduits seem to have greater capacity to influence their standing in a supply chain network. © International Journal of Industrial Engineering.