On the (dis)ability of the firm to quantify chains: a marketing perspective on sharing financial rewards

Abstract

Although the marketing discipline originates from agricultural economics, it currently moves to a new logic that is marked by, among other things, customer value, customer satisfaction, relationships, market orientation and resource-based theories. This article uses this evolving logic in marketing to examine the problem of sharing financial rewards in agricultural supply chains. Building on resource-advantage theory it is suggested that the potential reward that firms may derive from participating in a supply chain depends on the competitive position of the chain as a whole and on the competitive position of the individual firm within the chain. To understand what its contribution to the chain is worth, the firm should be able to quantify relative customer value. The paper identifies inter- and intra-organizational barriers that may disable the firm to do so. Inappropriate assessments lead to a disability of the firm to take financial rewards in exchange for its contribution to the chain. It is questioned whether academicians currently provide chain practitioners with the appropriate approaches to deal with this problem.