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Some theoretical foundations of Supply Chain Management and Supply Networks : the role of social networks in selecting partners

The past years have illustrated a shift in focus from transactional to relational exchange. In supply chain, this is highlighted by the fact that partnerships and alliance relationships are a prevalent topic of discussion. Focusing on integration is an important step toward a better understanding of the critical dimensions of supplier relationships. The desired outcome is a win-win relationship, where both parties benefit. Long-term strategic alliances are developed with a small group of suppliers. Successful Supply Chain Management (SCM) requires a change from managing individual functions to integrating activities into key supply chain processes. However, traditional SCM applications fall short when it comes to helping manufacturers manage one critical element, their relationships with suppliers. A firm’s social connections guide its interest in new partners and provide it with opportunities. This interest is closely rooted in the processes that underlie a firm’s entry into new partnership. Many opportunities for partnerships can be presented to firms through their existing sets of partners is not only economical but also technical and social.