Supplier partnering in small, oligopolistic markets: insights from Australasia

This present study employs case study research to investigate the conditions for successful partnership development in relatively small markets such as Australia/NZ, where the prospective partner–vendor likely serves the manufacturer's competitors as well. We find the oligopolistic nature of the supplier industry can restrict partnership development, particularly in terms of the sharing of cost and financial information. However, the manufacturer is more willing to share sensitive financial information with its vendor when it perceives its true competition in the global market as being from outside the economic region. In such instances, the behaviour of the relationship can yet be shaped in terms of, for example, the manufacturer's need to carefully disengage itself from other suppliers and engage in a single-sourcing arrangement with the partner–vendor. Further, the spillover of technology developed jointly by the manufacturer and the vendor to the manufacturer's competitors can be viewed favourably under certain conditions.