Integration of third parties within existing dyads: An exploratory study of category management programs (CMPs)

Abstract

In this study, we focus on the pursuit of cross-functional integration between suppliers and retailers along the different phases of a collaborative project. More specifically, we explore why and how, a supplier and retailer would want to shift the locus of integration from the dyadic to the network level by adding a third party to an ongoing relationship. A case study is developed to analyze the process of integration in the context of category management programs. The analysis reports on a program developed by a regional retailing chain based in the south of Italy, with the collaboration of a national coffee blends supplier and a third-party leader in the market analysis service business. The findings offer a novel view of third parties' role, which broadens the scope from a typical, initial support of negotiations to an evolving modality of intervention during the different phases of the collaborative project. More precisely, the third party enables the sequential and joint activation of alternative forms of interaction between the parties, which is pivotal for enacting the integration mechanism that is most suitable for each program phase. These findings offer a rich set of insights for the analysis of integration within distribution channel and supply chains, as well as for category management and, more generally, for knowledge management in marketing relationships.