Retail control of manufacturers' product-related activities: Evidence from the irish food manufacturing sector

Retailers have begun to leverage their position as brand guarantor within the food channel and, through their own brand products, play an increasing role in the provision of safe, quality foods to the consumer. In the process, retailers have internalised many of the activities formerly undertaken by food manufacturers such as branding, product and market development. However, in the absence of their own manufacturing resources, retailers are dependent on shaping food manufacturers' decisions concerning production activities. This paper investigates the industry, product and relationship characteristics that determine retailers' power over food manufacturers' product-related activities. These activities include the product specifications that manufacturers work with, the production processes they employ, the development of new production processes and the selection of their input suppliers.