Cited by 67Global trade, sustainability, and social impactCustomer Service Quality and LoyaltyQuality and Supply Management

Power imbalance and the dark side of the captive agri-food supplier–buyer relationship

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Glavee-Geo, Richard, Engelseth, Per, Buvik, Arnt·2022·Journal of Business Ethics

Abstract

This paper highlights the dark side of power imbalance regarding its consequences in agri-food supplier-buyer relationships. We report on findings from two studies. The first study is based on a sample of 105 key informants, while study 2 is based on a sample of 444 key informants, all from the cocoa agri-food supply market of Ghana. While the first study focuses on the antecedents of power imbalance and its consequences, the second study explores the role of cooperatives/collective action in minimizing supplier exploitation. Data from these studies were analysed using the partial least squares technique (SmartPLS). Analysis of these findings shows switching costs' impact on power imbalance to be curvilinear, while power imbalance has a curvilinear relationship with opportunism. The negative consequences of power imbalance are further exacerbated by dependency and the lack of joint action. Furthermore, we found the negative impact of power imbalance on financial performance to be stronger for non-cooperative members than for cooperative members, while, counterintuitively, we found the positive impact of economic satisfaction on financial performance to be stronger for non-cooperative members than for cooperative members.

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  • Numerous studies show that cocoa farmers' compensation is often suppressed in the face of buyer power among the dominant firms.

    “For example, numerous studies show that cocoa farmers ' compensation is often suppressed in the face of buyer power among the dominant firms (e.g., Glavee-Geo et al. 2022; De Schutter 2010).”

    From Corporate concentration and power matter for agency in food systems (2025) · cites this paper as Glavee-Geo et al. 2022

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Research works printed but not linked: 6

  1. Chin, W. W. (1998). The partial least squares approach to structural equation modelling. In G. A. Marcoulides (ed.), Modern methods for business research. Lawrence Erlbaum.
  2. Coughlan AT Anderson E Stern LW El-Ansary AI Marketing channels 2006 7 Pearson/Prentice Hall
  3. Cox A Sanderson J Watson C Power regimes: Mapping the DNA of business and supply chain relationships 2000 Earlsgate Press
  4. Nunnally JC Psychometric theory 1978 2 McGraw-Hill
  5. Skinner SJ Gassenheimer JB Kelly SW Cooperation in supplier-dealer relations Journal of Retailing 1992 68 2 174 193
  6. Wilemon DL Power and negotiation strategies in marketing channels The Southern Journal of Business 1972 7 12 32

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Authors
Glavee-Geo, R., Engelseth, P., & Buvik, A.
Affiliations
  • Norwegian University of Science and Technology (NO)
  • UiT The Arctic University of Norway (NO)
  • Molde University College (NO)
Corresponding author
Glavee-Geo, Richard
Venue
Journal of Business Ethics
Published
2021-03-19
Volume
178
Issue
3
Pages
609-628
ISSN
  • 0167-4544 (ISSN-L)
  • 1573-0697
OpenAlex
W3138398520
Cited by
64
References
103
Citations by year
2026: 17 · 2025: 14 · 2024: 12 · 2023: 9 · 2022: 7 · 2021: 5
FWCI
7.36
Type
journal article
Language
en
Open access
Locations
  • Journal of Business Ethics (publishedVersion, cc-by)
  • PubMed Central (publishedVersion, cc-by)
  • PubMed (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
  • NORA - Norwegian Open Research Archives (submittedVersion, other-oa)
Funders
NTNU Norwegian University of Science and Technology
Topics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Global trade, sustainability, and social impact
  • Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Customer Service Quality and Loyalty
  • Social Sciences › Business, Management and Accounting › Management Information Systems › Quality and Supply Management
Keywords
power imbalance, supplier-buyer relationships, agri-food supply chains, cocoa supply chain, cooperatives, collective action, switching costs, opportunism, dependency, joint action, financial performance, economic satisfaction, Ghana

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