On value activities and competitive advantage: an empirical study

Abstract

Chief executive officers (CEOs) of both supplier and distributor firms can create and sustain a distinctive competitive advantage by working with sales managers (SMs) to establish and maintain appropriate capabilities that add value. However, there is not much information in either the marketing or strategic management literature about the process used by SMs and CEOs in developing such capabilities. Using the resource-based view (RBV) approach and the perceptions of CEOs and SMs from industrial distribution firms; a scale has been developed to investigate the importance of a firm's value activities on achieving a competitive value. While several studies have examined the differences in perception between CEOs and SMs with respect to product strategies, empirical studies investigating the value creating activities are almost non-existent. Results developed in this study using the differences in the mean perception scores of CEOs and SMs indicate the importance of the four value activities of supplier relationships, customer relationships, competitor relationships, and top management activities. The theoretical and managerial implications of the findings are discussed. Future research directions are presented.