Table 3 Managerial decision... | Emerald Publishing

Table 3

Managerial decision recommendations under supplier dominance

Supply condition	Dominant risk	Objective	Managerial decisions	Strategies to prioritize	Strategies to avoid
Quadrant 1: High urgency × Low substitutability	Immediate supply disruption with no viable alternatives	Secure access and preferential treatment	Accept dependence on a key supplier to ensure priority access rather than pursuing unrealistic diversification	Access-preserving strategies: Sole sourcing, preferred customer positioning, bargaining power, long-term relational contracts, vertical integration	Diversification-oriented strategies: back-up sourcing
Quadrant 2: High urgency × High substitutability	Immediate disruption but alternatives exist	Enable rapid switching	Relax specifications and activate alternative suppliers to maintain operational continuity	Substitution-oriented strategies: Specification assessment, recipe reformulation	Relational lock-in strategies: sole sourcing, deep relational commitment, long planning horizons
Quadrant 3: Low urgency × Low substitutability	Long-term vulnerability to dominant suppliers	Build structural resilience	Invest in developing alternative suppliers over time while maintaining the dominant relationship	Diversification-oriented strategies: Back-up sourcing, gradual supplier development, coalition-building	Short-term adaptation strategies: specification assessment
Quadrant 4: Low urgency × High substitutability	Cost volatility rather than existential risk	Optimize cost and flexibility	Leverage market mechanisms and contracts rather than relational dependence	Contractual strategies: Intelligent deal structures, financial hedging, forward contracts	Access-preserving strategies: bargaining power development, preferred-customer positioning

Supply condition	Dominant risk	Objective	Managerial decisions	Strategies to prioritize	Strategies to avoid
Quadrant 1: High urgency × Low substitutability	Immediate supply disruption with no viable alternatives	Secure access and preferential treatment	Accept dependence on a key supplier to ensure priority access rather than pursuing unrealistic diversification	Access-preserving strategies: Sole sourcing, preferred customer positioning, bargaining power, long-term relational contracts, vertical integration	Diversification-oriented strategies: back-up sourcing
Quadrant 2: High urgency × High substitutability	Immediate disruption but alternatives exist	Enable rapid switching	Relax specifications and activate alternative suppliers to maintain operational continuity	Substitution-oriented strategies: Specification assessment, recipe reformulation	Relational lock-in strategies: sole sourcing, deep relational commitment, long planning horizons
Quadrant 3: Low urgency × Low substitutability	Long-term vulnerability to dominant suppliers	Build structural resilience	Invest in developing alternative suppliers over time while maintaining the dominant relationship	Diversification-oriented strategies: Back-up sourcing, gradual supplier development, coalition-building	Short-term adaptation strategies: specification assessment
Quadrant 4: Low urgency × High substitutability	Cost volatility rather than existential risk	Optimize cost and flexibility	Leverage market mechanisms and contracts rather than relational dependence	Contractual strategies: Intelligent deal structures, financial hedging, forward contracts	Access-preserving strategies: bargaining power development, preferred-customer positioning

Source(s): Authors' own creation