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Supply chain friends: The good, the bad, and the ugly

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  • Gligor, David M.
  • Esmark, Carol L.

Abstract

The importance of firms developing close relationships with suppliers has been well recognized by supply chain managers. However, business relationships ultimately progress due to individuals within firms interacting over time. Our results from in-depth interviews with supply chain managers revealed that decisions made by managers within the supply chain can’t be accurately explained or fully understood without accounting for the important influence of the friendships managers across firms develop with each other. This is of significant importance for senior managers since supply chain costs typically account for 60% to 90% of a company's total costs. In this article, we seek to shed some light on the implications of developing personal relationships with counterparts within the supply chain. We conclude by providing guidelines that upper management can follow to enhance the potential positive benefits associated with the inherent development of personal relationships/friendships and, equally important, mitigate the potential negative impact of such relationships.

Suggested Citation

  • Gligor, David M. & Esmark, Carol L., 2015. "Supply chain friends: The good, the bad, and the ugly," Business Horizons, Elsevier, vol. 58(5), pages 517-525.
    • Handle: RePEc:eee:bushor:v:58:y:2015:i:5:p:517-525
    DOI: 10.1016/j.bushor.2015.05.005
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    References listed on IDEAS

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    1. Marasco, Alessandra, 2008. "Third-party logistics: A literature review," International Journal of Production Economics, Elsevier, vol. 113(1), pages 127-147, May.
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    Cited by:

    1. Leonidou, Leonidas C. & Aykol, Bilge & Fotiadis, Thomas A. & Christodoulides, Paul, 2018. "Betrayal intention in exporter-importer working relationships: Drivers, outcomes, and moderating effects," International Business Review, Elsevier, vol. 27(1), pages 246-258.
    2. Gligor, David M. & Pillai, Kishore Gopalakrishna & Golgeci, Ismail, 2021. "Theorizing the dark side of business-to-business relationships in the era of AI, big data, and blockchain," Journal of Business Research, Elsevier, vol. 133(C), pages 79-88.
    3. Gligor, Dr David, 2020. "Birds of a feather: The impact of race on the supplier selection and evaluation process," International Journal of Production Economics, Elsevier, vol. 230(C).

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