Channel collaboration and firm value proposition

Abstract

In recent years, “efficient consumer response” has replaced prior management fads and rules of the competitive landscape in the field of grocery trade. This initiative thrives on creating value for the final customers through an efficient supply chain value system, and simultaneously appropriate value for the channel members involved. However, much of the evidence to date remains anecdotal, and thus, the channel collaboration – value conduct reminds a “black box”. We adopt a capabilities view and a contingency framework is proposed to test the postulated relationships between the key constructs by deploying multi‐country data. Our results indicate a strong positive association between channel collaboration and firm value proposition, and further that the relationship has a contingency specific profile. In managerial terms, business executives must carefully design a match between the strategic channel posture the firm possesses and its value creating and appropriating capability profile in managing collaborative channel relationships.