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1 – 10 of over 17000The key to success in the internet business lies in how you carry out the integration between virtual and physical channels. The purpose of this paper is to aim at defining the…
Abstract
Purpose
The key to success in the internet business lies in how you carry out the integration between virtual and physical channels. The purpose of this paper is to aim at defining the solution to the integration.
Design/methodology/approach
Channel coordination is grounded on a new governance of integration strategy which bridges the channels. This study proposes a novel research model with three stages: first, click-and-brick strategies; second, channel coordination for three purchase stages; and third, synergy realizations. A survey was conducted for collecting empirical data. PLS was used for path analysis. In total, three separate statistical analyses were performed for three defined integration strategies.
Findings
Click-and-brick strategies have different degrees of impact on channel coordination in different purchase stages and in turn, different degrees of impact on synergy benefits. Specifically, the in-house division strategy is more important in determining channel coordination in the three purchase stages.
Practical implications
Customers initially perceive online services with a nature of low trust and view them as highly risky. This integration is useful for a firm to successfully start a new online business. Further, it provides insight into allocating a firm’s resources to critical multi-channel activities to realize synergy benefits.
Originality/value
Multi-channel marketing is dynamic and complex in nature. Existing theories provide limited insight into effectively defining them. This study attempted to define a strategy-based implementation model. This model demonstrated the capability to effectively reduce the complexity of defining channel integration.
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Yong Liu, Zhi-yang Liu and Jiao Li
The purpose of this paper is an attempt to design a proper incentive coordination mechanism to deal with the channel conflicts between the traditional sales and online direct…
Abstract
Purpose
The purpose of this paper is an attempt to design a proper incentive coordination mechanism to deal with the channel conflicts between the traditional sales and online direct sales.
Design/methodology/approach
With respect to the problems of channel conflicts between the traditional sales and online direct sales, to optimize the sale system and get more profits, considering the influences of consumer network acceptance, the authors establish demand and profit function based on consumer's utility, respectively. What's more, we exploit the game theory to analyze the optional decisions of the supply chain under the incentive coordination condition and no incentive coordination condition, and then we discuss the supply chain's optimal pricing, demand, profit and compensation incentive levels with the different effect of consumer network acceptance.
Findings
The level of compensation incentive provided by the manufacturer is influenced by consumer network acceptance and product cost. The lower the consumer network acceptance, the better the compensation incentive coordination effect of manufacturers. Manufacturers, wholesalers, retailers and consumers are all important players in real supply chain relationships. When a manufacturer exists as a dominant role, it should pay full attention to the impact of consumer behavior on supply chain decisions.
Practical implications
The research can clarify the influence and mechanism of consumer behavior on supply chain channel conflict coordination, and deal with channel conflicts.
Originality/value
The proposed incentive coordination can effectively realize supply chain channel conflict resolution, and provide decision-making ideas and methods for manufacturers to develop the supply chain management of online direct sales channels.
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Yong Liu, Chang-Xue Lin and Gang Zhao
The paper attempts to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on…
Abstract
Purpose
The paper attempts to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on dual-channel supply chain. Finally, the authors design a two-part tariff coordination mechanism.
Design/methodology/approach
To deal with this pricing conflict problems of dual-channel supply chain consisting of dominant manufacturer and a retailer, considering the fact that online reviews and in-sale service are important factors on consumers’ purchase decisions, the authors establish some basic models and exploit them to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on dual-channel supply chain. Finally, the authors design a profit-sharing coordination mechanism.
Findings
The results show that the optimal online direct selling price is positively correlated with product perceived quality obtained from online reviews and negatively correlated with the in-sale service. The traditional retail price is positively correlated with the in-sale service and weakly correlated with online reviews. For the manufacturer and retailer, whether decentralized decision or coordination contract, their profits increase with the increase of the in-sale service in a certain range and quality perceived from spontaneous online reviews. Online reviews and in-sale service are important factors on consumers’ purchase decisions. Positive in-sale services and online reviews can provide consumers with a better shopping experience, thereby promoting their enthusiasm for shopping and improving their quality of life. The two-part tariff coordination mechanism improves the profits of the manufacturer and the traditional retailer, respectively, through the transfer fee.
Originality/value
The proposed approach can well analyze the channel conflicts and pricing problems between retailers and manufacturers with respect to product offline price and online price. The analysis and results can inform decision-making for manufacturers and retailers.
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Channel coordination has become an essential part of researching hotel supply chain management practices. This paper develops an improved channel coordination approach to…
Abstract
Purpose
Channel coordination has become an essential part of researching hotel supply chain management practices. This paper develops an improved channel coordination approach to coordinate the profit distribution between hotels and online travel agencies (OTAs) achieved through an introduction of advertising fees. This direction further improves the decentralization of cooperation and achieves Pareto improvement to achieve mutual profitability.
Design/methodology/approach
The methodology used in this study involves Stackelberg game theory employed for the decision-making and analysis of both the hotel and OTA. The OTA, acting as the leader, offers a hotel a contract specifying the commission rate that the hotel will pay to the respective OTA. The hotel, acting as a follower, sets a self-interested room rate as a given response. A deterministic, price-sensitive linear demand function is utilized to derive possible analytical solutions once centralized, noncooperative decentralization and cooperative decentralized channel occurs.
Findings
Results show that a new channel coordination approach is possible, namely via advertising fees. Prior to channel coordination, the OTA tends to set a higher commission rate, and the hotel sets a higher room rate in response under noncooperative decentralization. As such, this results in a lower channel-wide profit for all. One way to reduce channel-wide profit loss is to use a method of cooperative decentralization, which can, and will result in optimal profit as centralization takes place. However, the lack of incentives makes cooperative decentralization unfeasible. Further improvement is possible by using advertising fees based on a cooperative decentralization agreement, which can reach Pareto improvement.
Practical implications
This paper helps the OTA industry and hotel owners cooperate by way of smoother coordination. This study provides practitioners with two important practical implications. The first one is that the coordination between the hotel industry and OTA through cooperative decentralization allows for the achievement of higher profitability than that of noncooperative decentralization. The second one is that this paper solves the outstanding problem of insufficient incentives characteristic of cooperative decentralization by means of an advertising fee as a new supply chain coordination approach.
Originality/value
This paper offers both the problem and solution regarding the lack of incentives that hamper cooperative decentralization without the use of advertising fees. This paper is unique in that it derives analytical solutions regarding commissions levied in a typical hotel supply chain under noncooperative decentralization.
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Inter-firm integration is a multidimensional concept. This study aims to examine the performance effects of two aspects of inter-firm integration, coordination integration and…
Abstract
Purpose
Inter-firm integration is a multidimensional concept. This study aims to examine the performance effects of two aspects of inter-firm integration, coordination integration and authority integration, and their co-alignment with strategic and contextual factors.
Design/methodology/approach
The author conducted a quantitative empirical study using survey data of Japanese manufacturing companies’ relationships with their wholesalers to test hypotheses based on a literature review.
Findings
Coordination integration has a positive performance effect. There is co-alignment between high (low) coordination integration and high (low) product uniqueness. High (low) coordination integration is associated with high (low) demand uncertainty. High (low) authority integration is consistent with high (low) behavioral uncertainty.
Research limitations/implications
This study contributes theoretically to marketing channel and business-to-business marketing literature by holistically examining the linkages among governance forms, marketing-strategic factors, exchange-contextual factors and inter-firm performance. A limitation of this study is that the research data were collected in only one country, Japan. Thus, country-specific factors might affect the analytical outcomes.
Practical implications
Appropriate co-alignment among governance, strategies and contexts significantly influences performance. The findings have significant implications for manufacturing firms’ channel strategies.
Originality/value
This study tests the influences of two distinct dimensions of inter-firm integration on inter-firm outcomes, which few previous studies address. It comprehensively examines the linkages among governance forms, strategic factors, environmental factors and performance.
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Saurabh Agrawal, Dharmendra Kumar, Rajesh Kumar Singh and Raj Kumar Singh
Reverse supply chain (RSC) is one of the ways to handle product returns efficiently. Recovery of residual value from product returns also helps in achieving sustainability. Its…
Abstract
Purpose
Reverse supply chain (RSC) is one of the ways to handle product returns efficiently. Recovery of residual value from product returns also helps in achieving sustainability. Its successful implementation requires coordination among all the channel members involved in the activities, from the acquisition to collection to the disposition of returned products. This article aims to review the literature about coordination issues in the RSC.
Design/methodology/approach
A systematic literature review of 151 articles published during 2004–2021 is carried out. Theory, context and methodology (TCM) framework of the literature review is used to identify the research gaps for future research directions.
Findings
This study identifies the characteristics of RSC coordination. It includes channel structures; coordination mechanisms; performance measuring parameters; the methodology applied and explored industries. The review shows that game-theoretical modeling in RSC coordination is the most commonly used method to coordinate the channels. It was found that issues like disruption, fairness and corporate social responsibility are not explored in-depth and offer much potential for future research.
Originality/value
There are very limited studies on coordination issues in the RSC. The proposed articles add value by considering RSC issues from different strategic, government, consumers' behavior and functionality decision-making point of view.
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The purpose of this paper is to examine the transformation of the perspective applied to distribution structures in the late 1900s. This change implied that the previous focus on…
Abstract
Purpose
The purpose of this paper is to examine the transformation of the perspective applied to distribution structures in the late 1900s. This change implied that the previous focus on channel management by a channel captain was abandoned because of changes in the business reality. This perspective was replaced by models and concepts featuring collaboration and joint coordination between actors and relationships embedded in networks.
Design/methodology/approach
Changes of perspectives on phenomena are assumed to occur through the dynamic interplay between business reality, the conceptualisation of this reality and the managerial recommendations derived from this conceptualisation. The study is based on a thorough longitudinal literature review.
Findings
Shifts of perspectives occur when there is an increasing mismatch between the current business reality and mainstream conceptualisations. In this transformation, new constructs are required to illustrate new aspects of the business reality, exemplified in the study by interaction and networks. Some established concepts lose their significance, illustrated by the channel captain. Others may be re-interpreted, as is the case with the power concept. The study also shows that “forgotten” conceptualisations can be re-wakened, exemplified by the view of distribution structures as network constellations. In turn, these changes in the conceptualisation of distribution impact the managerial recommendations.
Originality/value
To the best of the author’s knowledge, there are no previous studies analysing how the perspective on a certain phenomenon changes through the dynamic interplay between business reality, conceptualisations and managerial recommendations.
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Ruting Huang and Xin Yao
The purpose of this paper is to investigate the decision behaviors and channel coordination of a sustainable three-echelon supply chain with retailer-led game setting.
Abstract
Purpose
The purpose of this paper is to investigate the decision behaviors and channel coordination of a sustainable three-echelon supply chain with retailer-led game setting.
Design/methodology/approach
The authors develop game-theoretic models to examine the decision behaviors of channel members in a three-echelon supply chain consisting of one supplier, one distributor and one dominated retailer. The authors first formulate two models for centralized decision and decentralized decision. And then this paper proposes sub-supply chain coordination and a two-tariff contract to coordinate the full supply chain. Finally, some management insights are obtained with a case study.
Findings
The authors find that when faced with environmentally conscious consumers, the channel members can benefit from higher greening level; however, higher cost of green technologies would have negative impacts on manufacturer's effort. The analysis also shows that cooperation among players can improve the supply chain performance and help with environmental improvement.
Research limitations/implications
The findings provide important managerial insights for the three-echelon supply chain to achieve sustainable goals where the retailer bears the environmental responsibility. However, this paper also has some limitations with assuming risk-neutral channel members and symmetric information.
Originality/value
The findings of the study contribute to coordination and collaboration in sustainability of supply chains. The results provide important managerial insights for the three-echelon supply chain to achieve sustainable goals.
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Zonghuo Li, Wensheng Yang, Xiaohong Liu and Hassan Taimoor
This paper aims to investigate the impact of retailer innovation investment and its spillover’s effect on competitive dual-channel supply chain pricing and optimization strategy…
Abstract
Purpose
This paper aims to investigate the impact of retailer innovation investment and its spillover’s effect on competitive dual-channel supply chain pricing and optimization strategy, and explore the coordination mechanism considering decision maker’s bargaining ability.
Design/methodology/approach
The Cournot and Stackelberg game methodology are made use of for the duopoly decentralized and joint decision-making model. The bargaining theory with different negotiation ability was used to analysis the coordination mechanism. Then this paper validates the model by simulation techniques.
Findings
The results enlightened some interesting facts, the increase in innovation demand coefficient spur rise in channel pricing, innovation investment level, supply chain profit and consumer welfare. The rise in innovation spillover coefficient leads to increase in online channel pricing, supply chain profit and consumer welfare. Due to the innovation spillover effect, retailer has to maintain channel competitiveness either through low price or high innovation investment strategies. In addition, online channel pricing, supply chain profit and consumer welfare in joint decision-making scenario is greater than that of decentralized decision-making scenario, while the difference in retailer channel pricing depends on parameters value. The increase in retailer’s joint negotiation factor leads to decrease in channel pricing and innovation investment level. Furthermore, there existence of an optimal innovative investment cost sharing proportion threshold indicates the achievement of dual-channel supply chain coordination. A refinement equilibrium can be achieved through Robinstein bargaining game. A larger interest discount factor leads to decrease in profit.
Originality/value
The research provides a theoretical reference for dual-channel supply chain pricing and coordination strategy under channel competition environment. The research can develop innovative investment strategies for retailers and implement response strategies for manufacturers.
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The purpose of this paper is to focus on the linkage between economic satisfaction and relationship commitment in distribution channels. The moderating effects of three variables…
Abstract
Purpose
The purpose of this paper is to focus on the linkage between economic satisfaction and relationship commitment in distribution channels. The moderating effects of three variables are considered: the use of behavior based coordination strategy; the perceived level of environmental uncertainty; and the use of collaborative communication strategy.
Design/methodology/approach
The hypotheses are tested through a sample survey among 101 channel partners of mobile service providers in a state in India.
Findings
The results indicate the moderating variables act as quasi moderators wherein they both directly and indirectly impact the dependent variable.
Research limitations/implications
Limitations of the sampling methodology and sample size restricts the scope for generalizing the hypothesis. Further, data were collected from only one side of the dyad.
Originality/value
The paper endorses and attempts to establish the view that channel satisfaction is a multidimensional concept and there are different routes to channel commitment.
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