Factors influencing agents’ bargaining power and collaborative innovation

Abstract

Purpose The purpose of this paper is to identify the factors influencing bargaining decisions and systematically develop a framework to support collaborative innovation within a strategic alliance. This framework can help companies resolve bargaining problems and facilitate cooperation and effective negotiation of strategic alliances to build successful business relationships. Design/methodology/approach The study considers Taiwanese agents’ bargaining power during negotiations with suppliers, using decision analysis to identify the variables affecting judgment. It uses Delphi–AHP methods to evaluate and develop a multi-criteria model explaining the critical factors to increase agents’ bargaining power and collaborative capability in the negotiation process. Findings Two significant differences between supply chain management practices and managerial specialty are found. Results suggest that better supply chain management practices of agents could assist suppliers in reducing their stock and processing delivery costs, and suppliers could offer more of their marketing planning and strategies to agents to increase confidence in each other’s products. Research limitations/implications It is hoped that this study will encourage more academics in the supply chain management field to investigate the extent to which other bargaining considerations act as facilitating or constraining factors in other Asian and non-Asian economies and other industries. Practical implications This study focuses on collaborative thinking and cooperation to develop and improve positive and relational outcomes in agent–supplier relationships. Originality/value The study analyzed the bargaining power of agents and collaborative innovation in the semiconductor industry from three major perspectives: professional competence, managerial competence and channel efficiency. The study provides effective suggestions for enhancing profits in agency-based cooperation.