For many years research on marketing channel behaviour was focused on power and conflict between channel members. More recently, as a result of globalisation, firms have become more dependent on each other and more collaborative models of channel behaviour have developed to meet the demands of the global marketplace. Research suggests that closer relationships involving trust, commitment, co-operation, co-ordination, and collaboration are needed between chain members to ensure the success of their value chains. The major challenge is to identify and develop leadership styles that foster efficient and collaborative value chains. Generally, the literature suggests that supply chain effectiveness and survival is linked to leadership behaviour. Leader behaviour has needed to adapt to the competitive global environment, which tends to focus on fostering inter-organisational co-operation rather than competing in an adversarial way. In this climate, leaders need to possess supply chain management skills and, perhaps more critically, the ability to establish and maintain effective inter-organisational networks. Early exploratory research in manufacturing suggested that a participatory leadership style is most effective in fostering co-operation and increased supply chain performance.