From channel management towards network coordination – changing perspectives on distribution arrangements

Abstract

Purpose The purpose of this paper is to examine the transformation of the perspective applied to distribution structures in the late 1900s. This change implied that the previous focus on channel management by a channel captain was abandoned because of changes in the business reality. This perspective was replaced by models and concepts featuring collaboration and joint coordination between actors and relationships embedded in networks. Design/methodology/approach Changes of perspectives on phenomena are assumed to occur through the dynamic interplay between business reality, the conceptualisation of this reality and the managerial recommendations derived from this conceptualisation. The study is based on a thorough longitudinal literature review. Findings Shifts of perspectives occur when there is an increasing mismatch between the current business reality and mainstream conceptualisations. In this transformation, new constructs are required to illustrate new aspects of the business reality, exemplified in the study by interaction and networks. Some established concepts lose their significance, illustrated by the channel captain. Others may be re-interpreted, as is the case with the power concept. The study also shows that “forgotten” conceptualisations can be re-wakened, exemplified by the view of distribution structures as network constellations. In turn, these changes in the conceptualisation of distribution impact the managerial recommendations. Originality/value To the best of the author’s knowledge, there are no previous studies analysing how the perspective on a certain phenomenon changes through the dynamic interplay between business reality, conceptualisations and managerial recommendations.

The role of intermediaries in the MICE tourism value chain: consensus or dissonance?

“…This led the authors to consider a “shift of perspective.” “Shifts of perspective” occur when there is a mismatch between the current business reality and mainstream conceptualisations. In such cases, previously established concepts lose their significance and new constructs are required to illustrate new aspects of the business reality (Gadde, 2020).…”

“…This methodology is especially recommended for studies with no clear theoretical framework of reference and for areas that deal with phenomena as complex as human relationships (Geiger and Turley, 2003). This situation is common in the B2B Marketing research, and there are numerous examples of papers that use this methodology for such cases (Gadde, 2020; Geiger and Turley, 2003; Gustavsson and Åge, 2014). This theory allows deriving explanatory variables from data rather than from a priori assumptions, previous research or existing theoretical frameworks.…”

“…Therefore, the theory of the value chain has shifted from an internal approach to an inter-organizational perspective in which this concept has been used to analyze the dynamics of markets and to investigate the interactions and relationships among different actors (Simatupang et al , 2017). In recent times the concept of distribution channels has shifted from a linear perspective to a network view (Gadde, 2020). Thus, in complex markets like MICE tourism, the value chain theory has also evolved toward a more dynamic project network concept in which the interaction of different supplier companies is necessary to produce the output required by the customer (Husmann et al , 2020).…”

No concept is an island: conceptualising (in) the industrial network approach

“…An example of how conceptualising may evolve over time can be found in two papers by Gadde (2016; 2021). Gadde examines shifts of perspectives on the organisation and management of distribution, starting with early distribution literature, followed by channel management and finally, today’s network perspective.…”

An Agency Theory Approach to Disintermediation in the Mice Distribution Channel From the Perspective of the Hotel Industry

“…Although recent studies focus on the positive aspects of distribution channels as value networks and cooperative rather than being confrontational (Gadde, 2020), channel power remains a key factor in channel management. The dominant position of stakeholders in distribution chains does not only depend on value creation.…”