Preliminary communication
Estimating bargaining power in logistic supply chains - a network approach
D. Čišić
; Rijeka Faculity of Maritime Studies
K. Kyliheiko,
; University of Technology Lappeenranta, Finland
A. Lehmusvaara
; University of Technology Lappeenranta, Finland
Abstract
The logistic systems are undergoing a rapid technological revolution towards the 21st century. New technologies are being developed and adopted in each mode of logistic supply chains as well. One of the most important single factors affecting all modes is, of course, information technology. In our view, information technology has a capability of affecting all the logistic modes in the similar way. These technologies in the form of electronic data interchange have begun to reduce the information and communication costs related to logistic decision making.
In our paper we first introduce a network analysis-based model, which makes it possible to focus on the relations among individual and non-individual logistic actors and their informational attributes. The model represents a clear view about the structure of the logistic communications network, thus enabling to describe the contribution of a network position to the relevance, influence, prominence and, most importantly, bargaining power of any actor functioning in the network. Different mathematical coefficients measuring bargaining power and interconnected relations are derived.
The last part of the paper combines these power coefficients with some basic ideas arising from modern economics
of organization, especially from transaction cost economics (TCE), thus clarifying the mechanisms through which profits derived from logistics operations are to get shared amongst different actors. Some illustrative hints concerning the usage of this model in the empirical context are scrutinized as well.
Keywords
bargaining power index; logistic supply change; economics of organization; transaction cost economics.
Hrčak ID:
344539
URI
Publication date:
20.12.2021.
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