Consumer Demand Information as a Re-Balancing Tool for Power Asymmetry Between Food Retailers and Suppliers

Abstract

This conceptual paper presents a model that may be used to redress the power balance between retailers and suppliers in the supply chain through better information symmetry and mutual dependence. It explores power dependence and resource dependence theories to conceptualise the use of demand information, by drawing on the diverse viewpoints within the extant literature on the effect of supply chain power asymmetry on exchange relationships and mutual dependence. Co-optation adds stability and reduces uncertainty through the exchange of resources. The dynamic nature of relationships and power between retailers and suppliers requires a multi-theory approach to identify a robust understanding of the interplay of different influence factors. This study has both operational and strategic implications for the food supply chain, as power asymmetry in relationships affects sustainability, especially in sales promotions periods for both retailers and suppliers. Improving power equilibrium between the buyer and supplier through information symmetry with the integration of power and resource dependence theory is novel.