Abstract
Although most supply chains involve three or more members among source, make, and delivery operations of a firm, as well as suppliers and customers, most of the research on multi-member systems has examined the pair-wise relationships between two adjacent members. The purpose of this study is to provide a more holistic understanding of multi-member relationships such as those within a supply chain. This is achieved by applying Heider’s Balance Theory for triadic systems to a simulated three-member distribution channel using student subjects. The results of this empirical investigation support our hypotheses and we offer insights on how managerial actions within each linkage of the supply chain impact their firm’s satisfaction with the multi-member system as a whole.
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