Strategy and Relationships: Defining the Interface in Supply Chain Contexts

Abstract

The emergence of the network organization is a phenomenon that has given rise to much comment and analysis. These virtual organizations are characterized by a confederation of specialist skills or capabilities provided by the network members. It is argued that in turbulent environments such collaborative arrangements can provide a more effective means of satisfying customer needs at a profit than the single firm undertaking multiple value‐creating activities. The implications of the network organization for relationship management are considerable. In particular, the challenges to logistics management are profound. The analysis of relationships is clearly linked to competitive strategy in a network context, yet the exploration of the interface between relationships, strategy and supply chain management is far from complete. Therefore, this paper seeks to conceptualize the relationship strategy interface in supply chain contexts. A framework is proposed and its basic principles illustrated through an analysis of the development of relationship strategies between leading market players in the UK brewing industry.