Relational capabilities that determine supply chain relationships

The purpose of this paper is to gain a better understanding of the types of relationships that exist along the supply chain and the capabilities that are needed to manage them effectively.This is exploratory research using quantitative data gathered by using a self-administered questionnaire, with the Australian road freight industry as the context. Three factors were identified as having significant influence on relationships: sharing, power and interdependency. When these factors are correlated to the types of relationship, managerial implications can be identified. The more road freight businesses place importance on power, the less they will collaborate. The greater the importance of sharing and interdependency, the greater is the likelihood of arm’s length relationships.