Demand Chain Management : Applying the Resource Based View of Competitive Advantages

A new, emerging business model, of demand chain management (DCM) builds on a close alignment between marketing and SCM resources and capabilities. This paper aims to understand how to achieve marketing and SCM integration and subsequently deployment of an effective DCM through better utilization of resources and capabilities of the organization. The resource based view (RBV) theory takes an “inside-out” or organization specific perspective on why organizations succeed or fail. According to RBV, sustainable competitive advantage derives from valuable, rare, difficult to imitate and imperfectly substitutable resources. DCM creates strategic assets for the organization in terms of the shareholder value creation because they enable the organization to generate and implement strategies that improve its overall efficiency and effectiveness. This paper provides some new perspectives in explaining marketing and SCM integration and subsequently DCM development from RBV perspectives and explores the organizational resources and capabilities contributing to such DCM initiatives