Explaining supply chain as an “opportunistic coalition”

Purpose – The purpose of this paper is to identify and explain competition between buyers and sellers within the same supply chain network. It suggests that supply chain can be best described as an opportunistic coalition between the powerful and ambitious ones. Design/methodology/approach – This paper discusses the arguments and counter‐arguments on outsourcing and also supply chain management as presented in the academic literature. Then it analyses some of the prevailing practices in supply chain, and uses concepts of power, team and opportunistic alliance to suggest that supply chain could best be described as an opportunistic alliance. Findings – Buyers and suppliers are always engaged in power struggles, even though they may be cooperating to run the supply chain smoothly. The degree of one party's success in such a struggle is determined by the extent of the others' dependence on it. The dependence is reliant on one's control over the process of defining, designing and producing the goods and services required to fulfil the needs of the end customers. Research limitations/implications – While success in the market is equally important, this paper elaborates on the supply chain issue only. Practical implications – The article is useful for managers, making “make‐or buy” decisions and entering into (supply chain) alliances. Similarly, students engaged in analysis and understanding of issues pertaining to supply chain management and strategy can find this article useful. Originality/value – Competition within supply chain has been a missing link in the discussions of the supply chain strategy. The paper has conceptualized and elaborated this very important issue.