Alderson’s transvection and Porter’s value system: a comparison of two independently‐developed theories

Abstract

Throughout the history of science scholars working independently have often arrived at virtually identical theories or discoveries[1]. Instances of simultaneous but independent discovery include: the Periodic Table for classifying elements by Dmitri Mendeleev in Russia and Lothar Meyer in Germany in 1869, the development of differential calculus by Newton and Leibniz, the theory of evolution by Darwin and Wallace, and the postulation of the existence of Neptune based on observations of perturbations in the orbit of Uranus by John Adams in England and Le Verrier in France in 1846[2]. In economics, both Chamberlin[3] and Robinson[4] are credited with independently developing the theory of imperfect competition. Kuhn[5]similarly describes the discovery of the principle of energy conservation by as many as twelve different scientists in the years 1830-1850, and explains this case of independent multiple discovery as resulting from the extant structure of scientific ideas as well as other aspects of cultural tradition.Another instance of independent theory formulation may have occurred much more recently. Wroe Alderson's[6] concept of the transvection and Michael Porter's[7] concept of the value system are remarkably similar. Both are at the macro (i.e., business system) level of analysis. Both the value system and the transvection are conceptualized as the activities required to move from raw materials in their natural state to finished goods in the hands of consumers. Both conceptual schemes are suggested as useful planning tools for achieving sustainable competitive advantage [6,7]. The development of each was also influenced by economic theory. Alderson[6], for example, acknowledges the influence of Chamberlin's[3] theory of imperfect competition on the The authors wish to thank Ken Bahn, Roger Dickinson, and Chuck Lamb for helpful comments on earlier versions of this paper.

Is the Resource-Based “View” a Useful Perspective for Strategic Management Research?

“…Hunt's (1997Hunt's ( , 2000 developing perspective draws heavily on Alderson's (1957Alderson's ( , 1965) "general theory" of marketing. In this earlier resourcedemand theory, Alderson explained how heterogeneous resources in their natural state were, through a series oi sorts and transformations that resemble Porter's value chain (see Priem, Rasheed, & Amirani, 1997, for a comparison), matched with the heterogeneous segments of demand on the customer side. Priem (1992) accessibly described Alderson's theory and recent supportive iindings in I/O economics.…”

A Demand‐side Perspective on Supply Chain Management

“…Alderson's focus on the “transvection” — which involves all activities necessary for taking raw materials and, through a series of sorts (decreasing and then increasing assortment heterogeneity) and transformations (affecting form, place and time utility), placing desired product assortments in the hands of consumer households — matches well with the purview of SCM and also provides a very similar but more consumer‐oriented approach to what Porter labels the value system. Priem, Rasheed and Amirani () compare Porter's () value system and Alderson's () transvection.…”

Macromarketing and the Systems Imperative

“…Marketing represents a provisioning technology designed to satisfy the needs of members of the market. Layton (2007 p. 230) defines a marketing system as,a network of individuals, groups, and/or entities linked directly or indirectly through sequential or shared participation in economic exchange that creates, assembles, transforms, and makes available assortments of products, both tangible and intangible, provided in response to customer demand.Frequently systems, within business schools are thought of in terms of the firm (Alderson (1957) also considered the systems of the family and the channel (Priem, Rasheed, and Amirani 1971)). We can put a ring around the firm, assign it a purpose, and decide what goes in and out of it, where the information flows and feedback mechanisms occur.…”