Dyads in Supply Networks - Oxford Academic

When two companies engage in business as a buyer and a supplier, they form a buyer-supplier relationship. That is a dyad—two entities linked up in a relationship. Examining how suppliers are embedded in their extended ties, we discover the duality of buyer-supplier relationships; for instance, a deep buyer-supplier relationship offers stability but also poses rigidity. We consider another form of a dyad in supplier-supplier relationships. The relationship between suppliers matters because sometimes the buyer would want the suppliers to work together, as in a new product development project; other times, the buyer would not want the suppliers to even talk to each other, especially when they are bidding on the same contract. These relationships between suppliers, in general, operate in varying degrees of co-opetition involving cooperation and competition.

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