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The emergence of dependence and lock-in effects in buyer–supplier relationships — A buyer perspective
Institution:1. Dept. of Business Policy & Logistics, University of Cologne, Albertus Magnus Platz, 50923, Germany;2. Deutsche Lufthansa AG, Airport-Ring, 60546 Frankfurt, Germany;1. School of Business and Management, Queen Mary University of London, Bancroft Building, Mile End Road, London E1 4NS, United Kingdom;2. Tasmanian School of Business and Economics, University of Tasmania, Private Bag 84, Hobart TAS 7001, Australia;3. Newcastle University Business School, Newcastle University, 5 Barrack Road, Newcastle upon Tyne NE1 4SE, United Kingdom;1. School of Communication, Journalism and Marketing, Massey University Albany Campus, Private Bag 102 904, North Shore, Auckland 0745, New Zealand;2. Department of Marketing & Quantitative Analysis, College of Business, University of New Haven, West Haven, CT 06516, USA;3. College of Management, National Sun-yat Sen University, 70 Lien-Hai Road, Kaohsiung 804, Taiwan, ROC;4. Department of Marketing, College of Business, City University of Hong Kong, Kowloon Tong, Hong Kong;1. School of Economics, Center for Energy Economics and Strategies Studies, Fudan University, China;2. Fudan Development Institute, Center for Energy Economics and Strategies Studies, Fudan University, China;1. Department of Management & Marketing, College of Business, North Dakota State University, Fargo, ND 58108-6050, United States;2. Information Systems and Operations Management Department, Sawyer School of Management, Suffolk University, 8 Ashburton Place, Boston, MA 02108, United States
Abstract:The industrial marketing literature frequently points to dependence in buyer–supplier relationships (BSRs) as an essential construct in understanding the development of strong, long-lasting partnerships. Although the antecedents of dependence have been discussed, extant research lacks an understanding of the explanatory mechanisms of how dependence – or even lock-in situations – actually evolve. In this article, we examine the emergence of these aspects in BSRs by analyzing the example of a logistics outsourcing relationship. Using a grounded theory approach in a real-life case involving a German mechanical engineering company and its service provider, we identify four interrelated mechanisms (convincing, tying, complementing and lock-in) that explain dependence and lock-in from a buyer's perspective. Based on our empirical findings, we develop a conceptual model that points to the theoretical importance of the interconnected influences and sub-processes between transactional, mental, and operative bonding effects. Our results inform managerial practice on how to plan and manage BSRs. The model enhances existing research on dependence in BSRs and can serve as a starting point for further investigations into buyer–supplier dependence (BSD) and lock-in in dyadic business relationships.
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