The legitimacy of power in business-to-business relationships

Abstract

Comment on the existence and perceived consequences within business-to-business relationships of ‘asymmetrical relationships’ has been made by many bodies. For example, there are: academic studies; comments in the press; government investigations; and court cases where the evidence suggests that one party dominates or exercises power over the other. Yet even though the subservient members of the network may have been ‘forced’ by another party to undertake some actions that they have perceived as being to their disadvantage, it is also the case that many such asymmetrical relationships are long-standing and that the parties involved seem successful. There is thus an apparent contradiction between the presumed negative effects of being dominated and the ongoing nature of such interactions. This paper will consider how the concept of legitimacy can explain why such disadvantageous situations continue to exist within business-to-business relationships.