Authors : Shireen Bojja

Volume/Issue : Volume 10 - 2025, Issue 1 - January

Google Scholar : https://tinyurl.com/ynm9hem4

Scribd : https://tinyurl.com/3et6e5hk

DOI : https://doi.org/10.5281/zenodo.14848311

Abstract : SMEs are very important in the global economy and they have some issues regarding seller power and buyer power. They weaken a business's power to fix prices, bargain for better deals, and guarantee long-term profits. Thus, large firms generally have better negotiation advantages based on big purchasing power and market impact while small companies have fewer opportunities and are under unfavorable trade conditions. This paper seeks to look at the forces of both seller and buyer power in relation to small businesses while looking at the dynamics and risks associated with these forces. This paper looks at ways through which small businesses can improve their seller power through product differentiation, branding, and technology advancement and seeks to address how these firms can avoid vulnerability to excessive buyer power through diversification of some of their customers, provision of additional value-added services, and cultivating a longterm relationship with some of these buyers. Using theory and examples from practice, the article outlines practical recommendations for SMBs and policymakers to mitigate these dynamics and promote positive change that will allow businesses to become more resistant to negative shocks and ensure profitability and sustainable development.

Keywords : Small Business, Degree of Control by Sellers, Degree of Control by Buyers, Nature of the Markets, Competitive Doctrines.

References :

1. Bari, M. S., Sarkar, A., & Islam, S. M. (2024). AI-augmented self-healing automation frameworks: Revolutionizing QA testing with adaptive and resilient automation. Advanced International Journal of Multidisciplinary Research, 2(6).
2. Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
3. Benton, W. C., & Maloni, M. (2005). The influence of power driven buyer/seller relationships on supply chain satisfaction. Journal of Operations Management, 23(1), 1-22. https://doi.org/10.1016/j.jom.2004.09.002
4. Bowles, S. (1991). What Markets Can—and Cannot—Do. Challenge, 34(4), 11–16. https://doi.org/10.1080/05775132.1991.11471518
5. Buvik, A., Andersen, O., & Gronhaug, K. (2014). Buyer control in domestic and international supplier-buyer relationships. European Journal of Marketing, 48(3/4), 722-741. https://doi.org/10.1108/EJM-03-2011-0181
6. Cannon, J. P., & Perreault Jr, W. D. (1999). Buyer–seller relationships in business markets. Journal of Marketing Research, 36(4), 439-460. https://doi.org/10.1177/002224379903600404
7. Ghosh, S., & Rajan, R. (2021). The Role of Technology in Empowering Small Businesses. Technology and Innovation Quarterly, 23(4), 45-62.
8. Hingley, M. K. (2005). Power to all our friends? Living with imbalance in supplier–retailer relationships. Industrial Marketing Management, 34(8), 848-858. https://doi.org/10.1016/j.indmarman.2005.03.008
9. Høgevold, N., Rodriguez, R., Svensson, G., & Otero-Neira, C. (2021). B to B Sellers’ Skill Level in Sales Performance – Frameworks and Findings. Journal of Business-to-Business Marketing, 28(3), 265–281. https://doi.org/10.1080/1051712X.2021.1974169
10. Islam, S. A. M., Bari, M. S., Sarkar, A., Khan, A. O. R., & Paul, R. (2024). AI-Powered Threat Intelligence: Revolutionizing Cybersecurity with Proactive Risk Management for Critical Sectors. Journal of Artificial Intelligence General Science (JAIGS), 7(01), 1-8. https://doi.org/10.60087/jaigs.v7i01.291
11. Islam, S. A. M., Bari, M. S., Sarkar, A., & Paul, R. (2024). Transforming Software Testing in the US: Generative AI Models for Realistic User Simulation. Journal of Artificial Intelligence General Science (JAIGS), 6(1), 635– 659. https://doi.org/10.60087/jaigs.v6i1.292
12. Kjellberg, H., & Helgesson, C. F. (2007). On the nature of markets and their practices. Marketing Theory, 7(2), 137-162. https://doi.org/10.1177/1470593107076862
13. Leonidou, L. C. (2005). Industrial buyers’ influence strategies: Buying situation differences. Journal of Business & Industrial Marketing, 20(1), 33-42. https://doi.org/10.1108/08858620510576775
14. Mazzarol, T., & Reboud, S. (2020). Buying, Selling and Valuing the Business. In: Small Business Management. Springer Texts in Business and Economics. Springer, Singapore. https://doi.org/10.1007/978-981-13-9509-3_14
15. Porter, M. E. (2008). The Five Competitive Forces That Shape Strategy. Harvard Business Review, 86(1), 78-93.
16. Rehme, J., Nordigården, D., Ellström, D., & Chicksand, D. (2016). Power in distribution channels—Supplier assortment strategy for balancing power. Industrial Marketing Management, 54, 176-187. https://doi.org/10.1016/j.indmarman.2015.07.007
17. Sarkar, A., Islam, S. A. M., & Bari, M. S. (2024). Transforming User Stories into Java Scripts: Advancing QA Automation in the US Market with Natural Language Processing. Journal of Artificial Intelligence General Science (JAIGS), 7(01), 9–37. https://doi.org/10.60087/jaigs.v7i01.293
18. Smith, L. R. (2019). Buyer Power in Modern Markets: Implications for Small Enterprises. International Journal of Small Business Management, 57(2), 12-28.
19. Weintraub, S. (1955). Revised Doctrines of Competition. The American Economic Review, 45(2), 463–479. http://www.jstor.org/stable/1823576
20. Williamson, O. E. (1981). The Economics of Organization: The Transaction Cost Approach. American Journal of Sociology, 87(3), 548-577.
21. Wyld, J., Pugh, G., & Tyrrall, D. (2012). Can powerful buyers “exploit” SME suppliers? Journal of Small Business and Enterprise Development, 19(2), 322-334. https://doi.org/10.1108/14626001211223928
22. Zahra, S. A., & George, G. (2002). Absorptive Capacity: A Review, Reconceptualization, and Extension. Academy of Management Review, 27(2), 185-203.