Sources of structural power in the context of value nets

The study discusses power relations between buyers and suppliers in value nets, focusing on sources of structural power among network players. Power is viewed to stem from organisational structures, and the discussion on power in dyadic buyer–supplier relationships is extended to the wider network perspective, in which the network effects are highlighted. The study contributes by developing a framework for the analysis of sources of structural power not only on the organisational and relationship level, but also on the network level. Moreover the study raises the question of network effects by discussing the significance of networks as a research context in studies on power. The results of a case study from the Finnish food industry indicate that buyers and suppliers have several sources of structural power and the network effects have a significant role when determining power relations.

Research highlights► The study determines sources of power for buyers and suppliers at the levels of (i) organisation, (ii) relationship and (iii) network. ► The findings of the study show that the interplay between different levels of power sources is evident and it affects network dynamics. ► The study highlights the significance of networks as a research context in studies on power between buyers and suppliers.