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Summary of Supply Chain Strategy_SC Conflicts-alternative resolutions_325240-M-6

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2022/2023 Written for academic year
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Tilburg University (UVT)
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Supply Chain Strategy 325240 M 6
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Summary of two articles: o Macaulay, S. (1963). Non-Contractual Relations in Business: A Preliminary Study. American Sociological Review, 55-67. o Menkel-Meadow, C. (2015). Mediation, arbitration, and alternative dispute resolution (ADR). International Encyclopedia of the Social and Behavioral Sciences, Elsevier Ltd. 416.

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Alternate dispute resolution
1. Dispute
− Disputes are unavoidable
• Mild disagreements to outright conflict

− Power perspective is common
• More powerful party gets it way

• GM → squeezing suppliers

• Ended up loosing its position

• Power based contracts can generate 40% higher costs


2. Some typical assumptions and responses
− Exchange partner will be opportunistic
• Unreasonable assumption?

• Does it match reality?

• A Hobbesian world of war against all

− Response: EXIT
• Alternate suppliers -> go to the market

• Problems: when markets are thin, and dependency is high

− Governance literature
• Some agents are opportunistic some of the time

• Bounded rationality/ measurement problems

• Continuity of relationships is important

− Response: VOICE

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Supply Chain Management
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September 14, 2023
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  • 325240 m 6
  • supply chain strategy
  • sc conflicts alternative resolutions
  • msc supply chain management
  • tilburg university

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