Hybrid buyer-supplier relationships in global electronic markets

Abstract

Research on the mechanisms for conducting business with suppliers has traditionally centred on the nature of arm’s length and embedded relational models. While such models provide a basis for understanding market and closely integrated approaches to supply chain management it has been recognised that a variety of hybrid models occur in practice. This paper identifies and examines a hybrid model of buyer–supplier relationships that forms part of a portfolio of relationships managed by a large Australian organisation. The hybrid model takes a local community perspective within a market based mechanism. The characteristics of the hybrid model are underpinned by the motivation to maintain goodwill in the supplier community and employ a global competitive electronic marketplace for procurement. Strategies to manage local suppliers and consideration of their role and standing in the local community are important factors that large organisations need to incorporate in hybrid procurement arrangements.