Power management in asymmetric B2B relationships

Qualitative research (case studies) and quantitative studies (surveys) have revealed the organisational and environmental factors that may have a strategic impact on power asymmetry between the two parties of a B2B relationship. Our research took the perspective of small and medium-sized enterprises working with large international entities and covered various sectors, characterised by different levels of internationalisation, including B2B transport providers, furniture manufacturers and material suppliers for national and international corporations. The international pandemic crisis that erupted during the project created an additional context for our conceptual and empirical investigations. fot. Michał Łepecki, prof. dr hab. Maciej Mitręga

fot. Michał Łepecki, prof. dr hab. Maciej Mitręga Our research suggests that SMEs can effectively boost their economic results in cooperation with larger strategic partners by relying on specific skills that can be developed in different management areas. On the one hand, as they enter into asymmetric power relations with large foreign buyers, SMEs should adapt to their requirements, because this is the only way to learn, i.e. shore up their skills and assets in the area of management and production technology. On the other, they should strive to strengthen their independent position within international supply chains, which requires the ability to diversify their buyer portfolio over time by actively searching for new partners and reassessing existing relationships. Our research suggests that this ability is severely limited in situations of market crisis, especially for service providers who have not yet built a recognisable brand. However, even then, their economic position vis-à-vis large players can still be enhanced via effective negotiation skills. Our research suggests that SMEs should develop different skillsets at different stages of their international market activities. Initially, their focus should be on meeting the requirements of strategic buyers; over time, however, they should move on to invest in their own brand and technology, which may gradually improve their position in international supply chains.