Influence of company’s power position on Competitiveness in supply chains

DOI 10.14707/ajbr.140010

Tamás Brányi
Doctoral School of Regional and Economic Sciences, Széchenyi István University,Győr, Hungary.
László Józsa
Kautz Gyula Faculty of Economics, Széchenyi István University, Győr, Hungary
Andrea Sólyom
Kautz Gyula Faculty of Economics, Széchenyi István University, 9026 Győr,Hungary.

Abstract

Supplier, producer and buyer companies make up a supply chain. The aim of this paper is to highlight that within each supply chain one company will occupy a power position which influences partner companies in supply chain but also influences competitiveness. However, while the competitiveness of companies in the chain is tied to the strongest link there are possibilities for smaller companies in the supply chain to act and ease dependency. In this paper, we describe these power elements as a positive influence on the supply chain, except in those circumstances where the holders of that power abuse their position through considering only their own outcomes.

Keywords: Supply chain, Cooperation, Power structures, Competitiveness