Apart from this, it is evident in some incidents that behavioural imposition is more important in comparison to the power throughout the negotiation with the suppliers in the upstream. The business organizations are hugely dependent on the suppliers who supply the required raw materials to the company. The quality and rate of the raw material are significant and play a vital role in the product development of the company. Hence, in this context, the business organizations have to maintain a healthy and sound relation with the suppliers so that the suppliers deliver the requisite raw materials to the organization within the time (Steele, 2009).
Apart from this, the strong power dominance can ruin the relationship between the buyer and supplier as the other party always searches for the options of having more power. In this way, the business transaction between the buyers and suppliers may be damaged. Hence, the power dominance should be considered as the less important aspect of the relationship between buyers and suppliers in comparison to the mutual trust and understanding, which is the core of any relationship.
The relationship between the buyers and suppliers is one of the most important aspects of the value chain management where the business organization provides great effort to create value for the money of the customers. Power dominance in supply chain management implies either suppliers or buyers power in a transaction. Before any transaction, both the parties, the buyers and suppliers, used to negotiate, and in this negotiation, the dominating party uses their power to make the transaction more profitable for them. However, the importance of the power concept is reducing over the time as within the increasingly competitive market, each organization has numerous options, and thus mutual understanding and trust are becoming a more important factor in buyer and supplier relationship and outcome of the relationship. The power influence in buyer and supplier relationship is reducing, and the mutual understanding and trust are becoming vital in this relationship and outcome.