In the academic literature, the revenue-sharing contracts are explored deeply and promoted highly. On the other hand, it appears to be less prevalent in practices, inspite of some highly-documented examples, for instance, how a revenue sharing contract helped the Blockbuster and film studios to increase the availability of the most recent video in rental shops. As most of the supply chains comprised of various stages, thus the major cause behind the failure of practical implementation of revenue sharing contract is that the primary focus of most of the academic research is on two-party contracts whereby one is supplier and another is a buyer. The traditional revenue-sharing contract could not be beneficial for two contracting parties in a chain comprised of various stages, as each of the members of the chain has the tendency to create impact for its own advantage in the revenue-sharing contract. It might not provide the equal benefit to each of the participants in the chain. Thus, the authors argue that it is necessary to integrate all of the participants of the supply chain in the revenue-sharing contract, and provides a spanning revenue-sharing contract that provide the equal incentive to everyone and enhance the coordination as well.
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