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Increasingly, firms have to be agile in order to respond to continuosly changing internal and external conditions. To this end, transaction-based supplier exchanges characterized by market transactions are increasingly being replaced by supplier alliances. Supplier alliances secure the provision of critical resources, and buyers and suppliers use there partnerships to enhance their competitive positions. Allinces allow buyers and suppliers to realize long-term objectives such as im-proved market offerings, reduced supply channel costs and enhanced opportunities to develop and launch innovations. Unlike traditional bargain-driven supplier exchanges, however, supplier alliances also impose switching costs amd reduce flexibility for both suppliers and buyers, and the increased entanglement