Interdependence and Relationship Persistence between Subcontractors and International Brand Firms: An Empirical Study Based on Resource Dependence Theory
To form strategic cooperation relationship with international brand firms is one of main upgrading strategies for local subcontractors. The relationships between remaining subcontractors and international brand firms have become polarized, continuing alliance with prominent international firms or retreating to alliance with less powerful buyers. Based on Resource dependence theory, this present study tries to examine the mechanism of how subcontractors can safeguard the alliance with international brand firms. To test the arguments, field survey data and binary logistic model are used and the result shows that there are four strategies for subcontractors to enhance relationship survival with international partners, which are expanding customer scope, resorting to non-profit value capture, extending value chains and taking part in decision making with partners. The four strategies are not only the process of adjusting power imbalance, but also the process of upgrading for subcontractors.