| Supply chain management involves the extensive coordination of planning and processes among firms within the supply chain. Such integration should conceptually generate decreased uncertainty, enhanced responsiveness, and reduced costs, thus translating to higher customer satisfaction and subsequent supply chain profitability. Supply chain management necessitates an environment of mutuality and cooperation, but inter-firm power influences may upset this relational nature. Thus, power presents a potential barrier to effective supply chain integration. This dissertation sought to investigate the presence of power within the supply chain in attempt to understand power as a critical component of the supply chain management environment.;The research methodology involved a survey of suppliers in the automobile industry, a pioneer of supply chain management. The survey instrument served to gather perceptions of power bases, critical inter-firm relationship elements, performance, and satisfaction. Structural equation modeling was then utilized to analyze the causal effects of power bases within the supply chain.;The research produced several important findings. First, expert, referent, and reward power sources were found to have significant positive effects upon the relationship between buyer and supplier, while coercive and legal legitimate power sources were found to have significant negative impacts. As a second major finding, the research verified that a strong supply chain relationship was perceived to have a beneficial influence upon supplier satisfaction as well as supplier, buyer, and supply chain performance.;Based on the results, the research indicates that supply chain strategy must incorporate power effects or risk compromising its functional effectiveness. The research also reveals evidence for the use of power management as a tool for enhancing supply chain integration. Such findings justify the need for further supply chain power research to provide additional insight into power management strategies and effects. |
