Forming close relationships with suppliers or customers is a popular business strategy, but such partnerships can be problematic. Many close business relationships - whether joint ventures or free associations - failure. Describes a phenomenon called the "dark side" of close relations and argues that the close relations that seem to be fairly stable, in fact, be vulnerable to decay and destruction. Draws on interviews with business relations and other examples. The same factors that strengthen the partnership can also open the door to relationship problems. For example, when the automaker and supplier to create a personal relationship between employees of the two firms to facilitate their union and just in time manufacturing process, trust and personal relationships are also activated by the more easy to cut corners in the production process. Discussion of strategies to prevent the dark side from taking over the business relationship - for example, to ensure that both parties in a relationship to invest in it, in effect replacing "mutual hostages." In cases where the damage to relations already exists, possible strategies include rotating in new staff, reconfiguration of relations, or terminating it. "Hide
by Erin Anderson, Sandy Jap Source: MIT Sloan Management Review 10 pages. Publication Date: April 1, 2005. Prod. #: SMR173-PDF-ENG
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