Relevance of supply chain dominance: A global perspective

Abstract

Background: The increasing pressure on businesses to remain competitive has made dominant practices more prevalent, particularly in the automotive and retail industries. Financial, exclusionary and exploitative practices seem to be the main occurrences in the global supply chain when analysing dominant behaviours. Objectives: The study explores the global existence of dominant supply chain behaviour and the type of dominant supply chain practices to which smaller supply chain affiliates are subjected. Method: Because of the sensitive nature of the topic, it was not possible to collect primary data. Therefore, secondary qualitative data sourced from surveys, journal articles, news reports, websites, governmental publications and academic reports were analysed and quantitised. Results: A total of 60 cases of dominance were reported in regions across the globe, with Europe and the United States experiencing the most. Although companies in African and Asian markets experienced dominance, the reporting of these incidents seems to be limited. Conclusion: It emerged that dominance is more prevalent in certain industries such as the automotive and retail sectors, mainly through resented practices. Furthermore, small firms that experience bullying have either had to close down or conform to the requirements of the bullying firm to maintain its operations.