Determinants of value sharing in channel relationships

Abstract

Purpose -Companies involved in collaborative channel relationships aim at creating in sum a higher value than each channel partner could achieve on its own. There is relatively little empirical insight into what determines the sharing of the "value pie". Therefore this paper aims to investigate determinants of value sharing in channel relationships. Design/methodology/approach -Data for testing the hypotheses were collected through a telephone survey of managers from large industrial firms in the automotive, food, engineering and chemicals industries in Germany. Complete information on the study's questions was received from 142 firms, accounting for a response rate of 40.1 percent. Findings -The results show that customer companies frequently receive larger shares of the value pie, while in most cases the value pie is shared equally. Furthermore, relationship quality, supplier motivation approaches, the goals of the channel relationship as well as the applied sharing principle are all influential in determining how value is shared in corporate practice. Research limitations/implications -Because all companies in the sample were selected from only four industries, all are among the largest companies in their specific industry, and all are headquartered in Germany, the generalizability of the results is unquestionably limited to similar firms. Practical implications -Customer as well as supplier firms should incorporate the identified determinants in their partnering and sharing decisions, since they have an impact on the long-term benefit of channel relationships. Originality/value -The underlying determinants of the sharing process and the value allocation to the channel partners have so far received little research attention. This paper addresses this situation.

Managing channel coordination in a multi-channel manufacturer–retailer supply chain

“…From a research standpoint, our findings are important because they build on and are significantly different from the empirical results derived from Cannon and Perreault (1999) and Wagner and Lindemann (2008). Both Cannon and Perreault (1999) and Wagner and Lindemann (2008) focused on the channel coordination of singlechannel supplier (or manufacturer)-retailer supply chain.…”

“…Our paper focuses on the channel coordination of multi-channel manufacturerretailer supply chain, which is becoming more and more popular in the business world and has significantly reshaped supply chain management in the past decade. Both Cannon and Perreault (1999) and Wagner and Lindemann (2008) only qualitatively addressed the issues of profit sharing and channel coordination but did not develop any strategy for branding and bargaining. Our paper addresses these issues theoretically and suggests specific models (e.g.…”

“…Both Cannon and Perreault (1999) and Wagner and Lindemann (2008) focused on the channel coordination of singlechannel supplier (or manufacturer)-retailer supply chain. Our paper focuses on the channel coordination of multi-channel manufacturerretailer supply chain, which is becoming more and more popular in the business world and has significantly reshaped supply chain management in the past decade.…”

“…Koulamas (2006) presented a standard newsvendor problem in a single manufacturer-retailer channel and showed that the retailer always benefits from the transition to revenue sharing. Wagner and Lindemann (2008) conducted an empirical study to show that relationship quality, supplier motivation, the aims of improving channel performances, and the applied sharing principle all influence the value of sharing between the channel partners.…”

Understanding B2B customer loyalty in the mobile telecommunication industry: a look at dedication and constraint

“…First, the present study controlled for company size because it can be a potential source of variance that confounds research findings (Wagner and Lindemann 2008). For instance, Redondo and Fierro (2007) found that company size has influences on the temporal orientation of firm-supplier relationships.…”