(3) Captive supply chain. Suppliers are dependent on larger customers who closely monitor and control the exchange. Low supplier capability to codify or manage complex information requirements leads to the development of a captive supply chain governance structure. The supplier becomes captive to the buyer as a high level of intervention is required to support the transaction. This leads a focal firm to lock suppliers in so that competitors are prevented from gaining
advantage of the resource that the buyer has invested into the vendor.