JUST‐IN‐TIME SUPPLY: COOPERATION, COMPETITION, AND ABUSE

Words like “marriage,” “mutual trust” and “partnership” are often used to describe buyer‐supplier relationships in a Just‐in‐Time environment. Using a transaction cost economics framework, we contend that this structure is and will continue to be the most efficient arrangement for both parties, as long as the balance of power is maintained. However, as the relationship evolves over time, the balance of power can shift and “cooperation” can turn into abuse.