Hybrid buyer-supplier relationships in global electronic markets

Authors:
Craig Standing;Rosemary Stockdale;Peter Love
Affiliations:
Edith Cowan University, 100 Joondalup Drive, Joondalup 6027, Australia;Rosemary Stockdale Information Systems, Institute of Information and Mathematical Sciences, Massey University, Albany, New Zealand;Edith Cowan University, 100 Joondalup Drive, Joondalup 6027, Australia
Venue:
Information and Organization
Year:
2007

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Abstract

Research on the mechanisms for conducting business with suppliers has traditionally centred on the nature of arm's length and embedded relational models. While such models provide a basis for understanding market and closely integrated approaches to supply chain management it has been recognised that a variety of hybrid models occur in practice. This paper identifies and examines a hybrid model of buyer-supplier relationships that forms part of a portfolio of relationships managed by a large Australian organisation. The hybrid model takes a local community perspective within a market based mechanism. The characteristics of the hybrid model are underpinned by the motivation to maintain goodwill in the supplier community and employ a global competitive electronic marketplace for procurement. Strategies to manage local suppliers and consideration of their role and standing in the local community are important factors that large organisations need to incorporate in hybrid procurement arrangements.