Article
Engineering, Manufacturing
Yanli Tang, Suresh P. Sethi, Yulan Wang
Summary: This study examines the decision-making process of an e-tailer's upstream supplier who wants to enter the retail market. The e-tailer has private demand information and decides whether to share it with the supplier. The study finds that the e-tailer has no incentive to share information under certain circumstances and that agency encroachment is more likely to sustain in a specific leadership scenario.
PRODUCTION AND OPERATIONS MANAGEMENT
(2023)
Article
Chemistry, Multidisciplinary
Rong Ma, Tianjian Yang
Summary: This study develops a multi-agent-based model to analyze manufacturers' channel encroachment strategies and supply chain evolution. Manufacturers can sell complementary products of varying quality through direct sales channels and e-commerce platforms. Consumers compare pricing information from different channels before making a choice. The study finds that manufacturers' channel encroachment is detrimental to the profitability of the e-commerce platform, but consumers' preferences and higher costs can discourage encroachment decisions.
APPLIED SCIENCES-BASEL
(2023)
Article
Computer Science, Interdisciplinary Applications
Cuihua Zhang, Yanting Li, Yong Ma
Summary: The study establishes three-stage sequential game models to investigate a manufacturer's electronic channel configuration strategy from the perspective of both the manufacturer and the whole supply chain. The main innovation lies in involving three different electronic channel structures and incorporating key factors such as cross-channel effect, channel competition, and platform service. Through sensitivity analysis and numerical examples, it is found that channel competition intensity and transaction fee impact factor are critical to determining channel configuration.
COMPUTERS & INDUSTRIAL ENGINEERING
(2021)
Article
Management
Jin Li, Liao Yi, Victor Shi, Xiding Chen
Summary: Research suggests that in a dual channel model, decentralized encroachment outperforms centralized encroachment when the retailer utilizes strategic inventory, benefiting both the supplier and retailer. However, the impact of unit inventory holding cost on the retailer's benefits should be taken into consideration.
OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE
(2021)
Article
Computer Science, Interdisciplinary Applications
Shuhua Chang, Haiteng Ma, Pengwen Hou
Summary: This paper focuses on the optimal investment strategy selection problem between a manufacturer and a retailer. The study compares equity investment and channel investment to identify optimal investment decisions and explores the behavioral patterns of both parties. The results show that equity investment can promote the establishment of a manufacturer's direct selling channel, and the retailer may benefit from manufacturer encroachment in this case. However, under channel investment, the retailer will suffer from encroachment. The retailer's optimal investment strategy depends on the difficulty between equity investment and channel investment.
COMPUTERS & INDUSTRIAL ENGINEERING
(2023)
Article
Engineering, Industrial
Peng He, Yong He, Xiaoying Tang, Shigui Ma, Henry Xu
Summary: This paper examines the impacts of manufacturer's channel encroachment and e-commerce platform's logistics integration on the e-commerce platform service supply chain. The study finds that the platform's complete logistics integration benefits the entire supply chain, regardless of whether the manufacturer implements online channel encroachment or not. Surprisingly, a partial logistics integration strategy outperforms the complete strategy for the manufacturer and the supply chain as a whole, but underperforms for the platform. Two coordination mechanisms are proposed to achieve a three-win situation.
INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS
(2022)
Article
Business
Daniel Tolstoy, Emilia Rovira Nordman, Uyen Vu
Summary: This study investigates the reasons for performance variations among international e-commerce SMEs using a research model built on the capabilities perspective and market orientation literature. The findings suggest that having online marketing capabilities alone is not sufficient to improve performance. Instead, marketing ambidexterity, indicated by both market-driven and market-driving approaches, plays a crucial role in leveraging the effect of online marketing capabilities.
INTERNATIONAL BUSINESS REVIEW
(2022)
Article
Operations Research & Management Science
Jin Zhang, Desheng Wu
Summary: This paper examines the importance of selling to end customers through online channels in the development of e-commerce. It analyzes the strategic interaction between e-tailers and a monopolistic manufacturer, taking into account factors such as cross-channel spillover and competition. The paper shows the equilibrium in dominant e-tailer and dominant manufacturer structures and compares the performance of firms under these different power structures. It also highlights the impact of bargaining power and the positive effect of cross-channel spillover on e-tailers' profits, while peer competition has a negative effect.
ANNALS OF OPERATIONS RESEARCH
(2023)
Article
Engineering, Manufacturing
Liang Liang, Jingxian Chen, Dong-qing Yao
Summary: In practice, manufacturers can encroach on retail markets through various methods, one being through direct online sales to consumers, called encroachment. Current research assumes that downstream retailers continue to procure from the encroaching supplier. However, in reality, retailers have the option to switch suppliers after encroachment. This paper analyzes the effects of the option of switching suppliers on strategic interactions in the supply chain under the threat of supplier encroachment.
PRODUCTION AND OPERATIONS MANAGEMENT
(2023)
Article
Engineering, Manufacturing
Albert Y. Ha, Huajiang Luo, Weixin Shang
Summary: The study uses a game-theoretic model to analyze the encroachment and information sharing decisions by a manufacturer in a supply chain, finding that these decisions are complementary. It demonstrates that the decision to encroach can impact information sharing, highlighting the need for managers to consider the relationship between the two decisions.
PRODUCTION AND OPERATIONS MANAGEMENT
(2022)
Article
Engineering, Manufacturing
Ningning Wang, Zhuoxin Li
Summary: This study investigates how a dual-purpose corporation retailer pursuing profit and consumer surplus affects market competition and supplier strategies. Surprisingly, a dual-purpose retailer can deter supplier encroachment and earn higher profits, but may provide lower consumer surplus compared to for-profit retailers. The commitment to dual objectives can alter market dynamics and influence supplier behavior.
PRODUCTION AND OPERATIONS MANAGEMENT
(2021)
Article
Engineering, Manufacturing
Siyu Shi, Chenyu Wang, T. C. Edwin Cheng, Shuai Liu
Summary: Traditionally, manufacturer encroachment is investigated under an integrated organizational structure, but with a specific e-commerce division, the manufacturer can delegate online business decisions to maximize revenue under a decentralized structure. Our study explores manufacturer encroachment in a supply chain, considering the choice between the integrated and decentralized structures. Results show that the decentralized structure expands the manufacturer's options to encroach but intensifies competition. The integrated structure can lead to a win-win-win outcome, while encroachment is not beneficial for the manufacturer when direct selling cost is moderate.
PRODUCTION AND OPERATIONS MANAGEMENT
(2023)
Article
Management
Junwu Chai, Hengyu Li, Wei Yan, Youwei Li
Summary: The study examines the profitability of retailers selling extended warranties, and the strategic choice between offering their own extended warranties or reselling those provided by manufacturers. It also delves into the preference confliction between the two parties regarding these two options.
JOURNAL OF THE OPERATIONAL RESEARCH SOCIETY
(2021)
Article
Business
Anett Erdmann, Jose M. Ponzoa
Summary: This research examines the cost-result relationship of Inbound Marketing actions used by grocery ecommerce, analyzing the mix of SEO and SEM techniques among 29 leading companies over a six-year period. The results suggest that ecommerce is optimizing Digital Inbound Marketing in accordance with an established model, although differences were identified based on format type (pure player versus brick and mortar) and country level (UK and USA versus others).
TECHNOLOGICAL FORECASTING AND SOCIAL CHANGE
(2021)
Article
Management
Molin Liu, Bin Dan, Zili Guan, Mengli Li
Summary: This paper investigates the information sharing strategy of an e-retailer in an e-tailing supply chain for fresh produce, considering the supplier's encroachment. The study finds that the e-retailer may profit more from encroachment and its information sharing strategy can influence the supplier's encroachment under certain conditions. Additionally, the paper discusses the impact of entry cost on the profits of E-FSC members, showing that increasing entry cost may improve the supplier's profit.
INTERNATIONAL TRANSACTIONS IN OPERATIONAL RESEARCH
(2023)
Article
Business
Jing Xia, Wenju Niu
ELECTRONIC COMMERCE RESEARCH AND APPLICATIONS
(2019)
Article
Green & Sustainable Science & Technology
Jing Xia, Wenju Niu
JOURNAL OF CLEANER PRODUCTION
(2020)
Article
Management
Jing Xia, Wenju Niu
Summary: This paper investigates the impact of information asymmetry on corporate environmental responsibility and profitability in supply chain contracting. The results show that under different information scenarios, manufacturers and retailers can achieve profitability and fulfill environmental responsibilities through contract design and cooperation.
OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE
(2021)
Article
Management
Wenju Niu, Houcai Shen
Summary: This paper investigates whether manufacturers with differentiated absorptive capacity will invest in uncertain process innovation under knowledge spillovers. Game-theoretic models with bilateral investment, unilateral investment, and no-investment are developed to analyze the equilibrium outcomes. The study reveals that the intensity of knowledge spillovers plays a crucial role in manufacturers' investment decisions.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2022)
Article
Economics
Wenju Niu, Houcai Shen, Lianmin Zhang
Summary: This paper investigates the investment decision of manufacturers in decarbonizing innovation and the impact of power on investment incentive, firm profitability, consumer surplus, and system performance. The findings suggest that increasing retailer power weakens the manufacturer's investment incentive, and the effects of power on manufacturers and retailers are contradictory. Moreover, when the power of both firms is balanced, the system's economic performance is higher but puts significant strain on the environment.
TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW
(2022)
Article
Operations Research & Management Science
Wenju Niu, Jing Xia, Houcai Shen
Summary: This paper investigates the factors and outcomes of decarbonizing investment by firms in a supply chain. The study finds that the supplier is profitable to invest only when the probability of innovation success is high enough. Information asymmetry tends to decrease the supplier's profit, but a menu of contracts allows the retailer to get information rent. The decarbonizing investment helps boost the information rent. The economic and environmental performance of the supply chain may not necessarily be lower under information asymmetry.
ANNALS OF OPERATIONS RESEARCH
(2022)
Article
Computer Science, Interdisciplinary Applications
Wenju Niu, Juan Chen, Zhao Liu, Lei Guan, Lianmin Zhang
Summary: This study investigates the optimal product upgrades and rollover strategies of a risk-averse firm under uncertain future demand. The findings suggest that the firm's decision on upgrading investments and the type of product rollover strategy depend on its level of risk aversion. Sensitivity analysis shows that the dual-rollover strategy can serve as a hedge against increased demand uncertainty.
COMPUTERS & INDUSTRIAL ENGINEERING
(2022)
Article
Management
Lei Guan, Wenxi Gu, Wenju Niu, Lianmin Zhang
Summary: In this study, the profit of a B2B supply chain with one supplier and multiple retailers is compared under the flat price mechanism, individual quantity discount mechanism, and group-buying price mechanism. The findings suggest that the individual quantity discount mechanism is preferable for homogeneous retailers, while the group-buying price mechanism is optimal for situations with heterogeneous retailers and a moderate difference in market scale. However, the condition for the latter is quite stringent. These insights shed light on the limited adoption of group-buying price mechanism in the B2B environment and provide guidance for suppliers in selecting suitable pricing mechanisms.
INTERNATIONAL TRANSACTIONS IN OPERATIONAL RESEARCH
(2022)
Article
Management
Yujie Xiao, Wenju Niu, Lianmin Zhang, Weili Xue
Summary: This paper examines a dual-channel supply chain consisting of a manufacturer, a retailer, and a direct channel, focusing on whether the retailer introduces a store brand (SB) and how it impacts profitability. Game-theoretic models are developed to analyze the introduction incentive and power structure. The findings reveal that the retailer's introduction of the SB depends on the quality and inter-brand substitutability. Interestingly, increasing the retailer's power may not incentivize SB introduction.
OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE
(2023)
Article
Management
Zhao Liu, Xiaoqiang Cai, Wenju Niu, Lianmin Zhang
Summary: Fraudulent returns in online retail platforms have caused significant losses to retailers, but a blockchain-based system can address this issue by ensuring the immutability of stored data. This study examines the impact of blockchain technology on retailers and their suppliers in eliminating fraudulent returns. The findings indicate that the retailer's adoption of blockchain technology depends on the supplier's investment efficiency and the magnitude of return losses. Additionally, the use of blockchain technology improves supply chain performance but can lead to varying profitability outcomes for retailers and suppliers.
INTERNATIONAL TRANSACTIONS IN OPERATIONAL RESEARCH
(2023)
