Asymmetric customer–supplier relationship development in Taiwanese electronics firms

a r t i c l e i n f o Keywords: Asymmetry Customer–supplier relationships Smaller supplier Larger customer Taiwanese electronics industry The purpose of this paper is to analyse the relationship development stages of asymmetric customer–supplier relationships. The structure of relationships between larger customers and smaller suppliers has been the focus of a number of studies in IMP (Industrial Marketing and Purchasing Group) research. But, there is a pau-city of research that examines development stages in relationships where a difference in size between the parties exists. The paper links the characteristics of asymmetric customer–supplier relationships and the relationship development stages through a literature review. The findings from a set of five in-depth case studies of asymmetric customer–supplier relationships in the Taiwanese electronics industry are presented. The case studies involved 50 semi-structured interviews with customer and supplier executives and, in addition, multiple observations of customer–supplier interactions within each case study. Individual and cross-case analysis was conducted to examine the links between the characteristics of asymmetric customer–supplier relationships and relationship development stages. The findings revealed that asymmetric customer–supplier relationships in the Taiwanese electronics industry were very unbalanced and vulnerable in the exploratory stage of development. In the developing stage relationships were more likely to develop if suppliers and customers mirrored each other's behaviour and echoed each other's priorities. In the stable stage suppliers and customers worked on shared and balanced contributions to the relationship. The paper contributes to the understanding of how smaller suppliers and larger customers can identify and develop key sets of relationship characteristics through the exploratory, developing and stable stages of asymmetric relationship development from both customer and supplier perspectives. Since the 1980s asymmetry has been found to have a potentially destabilising effect on business relationships (Harrigan, 1988). Relationships are more likely to run smoothly if the capabilities, resources and characteristics of the relationship are a good strategic fit and have a certain level of complementarity between the parties involved (Tu, 2010). Researchers have highlighted that existing research fails to encapsulate the complex balance of characteristics in customer–supplier relationships and the corresponding influences on relationship development (Holmlund, 2004). Understanding the nature and influences of asymmetric customer–supplier relationships may enable both parties to have a more transparent vision of their potential within the relationship and on their ability to set development priorities and manage problems during relationship development (Ford & Saren, 2001). In the industrial marketing literature, asymmetry has …