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Leveraging It Resources, Embeddedness, And Dependence: A Supplier's Perspective On Appropriating Benefits With Powerful Buyers, Michael T. Lee, Kit Scott
Leveraging It Resources, Embeddedness, And Dependence: A Supplier's Perspective On Appropriating Benefits With Powerful Buyers, Michael T. Lee, Kit Scott
Accountancy Faculty Publications and Presentations
The relationships between suppliers and buyers are often characterised by power differentials and dependence at the same time. This leads to the ability of a powerful buyer to benefit more from the relationship than the supplier. We examine how a supplier can strengthen its use of relation-specific IT with embeddedness to appropriate its share of relational benefits. We developed and tested a model of supplier relation-specific IT use, embeddedness, and buyer dependence on supplier. The results showed that embeddedness did not lead directly to the sharing of relational benefits; rather the appropriation of relational benefits is derived from buyer dependence.