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Article
Publication date: 1 February 2021

Ling Liang, Lin Tian, Jiaping Xie, Jianhong Xu and Weisi Zhang

The car-sharing market has entered the mature stage, and consumers' demand shows a diversified increasing trend. This paper considers two modes of operation and two…

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Abstract

Purpose

The car-sharing market has entered the mature stage, and consumers' demand shows a diversified increasing trend. This paper considers two modes of operation and two pricing strategies, which are business-to-consumer and consumer-to-consumer modes, market pricing and platform pricing. Under these conditions, the platform's revenue-sharing ratio will be different. The purpose of this paper is to explore this research question, and seeks an optimal pricing mechanism that can achieve a win–win situation between platform and automobile manufacturer in the two market modes.

Design/methodology/approach

The authors design different profit functions for platform under the two contexts. Of course, the platform's function is constrained to the manufacturer's function. By introducing a revenue-sharing contract a Stackelberg game model dominated by the platform is established and the equilibrium solutions under the two pricing models are derived.

Findings

The study found that even if only market pricing is executed, the scale of the car-sharing market will continue to expand. As the car-sharing market becomes more saturated, platform pricing is better for the automobile manufacturer; in most cases, the platform prefers platform pricing, but when the number of private cars is relatively small, if the cost of car operation and maintenance for the automobile manufacturer is lower or the revenue-sharing ratio of private cars is high, then market pricing will be more favorable to the platform.

Practical implications

With the cross-border integration of car service platforms and the automobile manufacturing industry, the key to achieving win–win cooperation and sustainable development in the car-sharing market will converge on the question of how to design a suitable pricing mechanism and revenue-sharing method.

Originality/value

Authors have determined how a car-sharing platform achieves a win–win order pricing strategy with the manufacturer and private car owners, respectively. And authors combined the supply chain revenue-sharing contract with the car-sharing market to explore the application of the revenue-sharing contract in the sharing economy.

Details

Industrial Management & Data Systems, vol. 121 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 13 March 2017

Ling Liang, Jiaping Xie, Luhao Liu and Yu Xia

The purpose of this paper is to discuss how wind farms attract wind turbine manufacturers to get involved in wind turbines’ maintenance service with revenue sharing…

Abstract

Purpose

The purpose of this paper is to discuss how wind farms attract wind turbine manufacturers to get involved in wind turbines’ maintenance service with revenue sharing contract of bundled service under which the background of operation and maintenance (O&M) aftermarket of wind turbine exists. The authors also try to extend the results to the application of product plus service business mode on large-scale equipment O&M service. At present, Chinese wind power industry is suffering from production capacity redundancy. The profit levels for both wind farm and wind turbine manufacturers are relatively low. It is significant for Chinese wind power industry development to coordinate the supply chain of wind power in order to reduce O&M costs and increase revenues.

Design/methodology/approach

The present paper discusses product plus aftermarket service contract design on the background of closed-loop product service chain and uncertain equipment demand using revenue sharing contract model.

Findings

If centralized decision making is assumed, the authors find that the wind turbine order increases as the aftermarket service effort level and aftermarket service profit increase; aftermarket service effort level is positively correlative to the service efficiency. On the other hand, if decentralized decision making is assumed, the wind turbine order increases as share of the aftermarket service chain by manufacturer to wind farm increases and share of product supply chain by wind farm to manufacturer decreases. The optimal effort level of wind farm increases as the share of aftermarket service chain increases while the optimal effort level of the manufacturer is a concave function of share of aftermarket service chain if service quality linear correlates with effort level. Meanwhile, the authors find that the revenues of the product supply chain and aftermarket service chain have a concave relationship. This relationship is not affected by the format of relationship between service quality and effort level (linear or exponential).

Practical implications

The results could potentially be used to provide the wind turbine manufacturer with a greater profit space and satisfy wind farm’s equipment maintenance demand at the same time. It can also guide the practice of revenue sharing in the aftermarket service and manufacturing servitization.

Originality/value

In this model, the authors assumed that both the forward revenue sharing of power generation by wind farm to manufacturer and the backward revenue sharing of maintenance service by the manufacturer to wind farm exist in closed-loop product service chain. Then the authors discussed channel coordination of such cross-revenue sharing contract.

Details

Industrial Management & Data Systems, vol. 117 no. 2
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 10 July 2018

Jiaping Xie, Yu Xia, Ling Liang, Weisi Zhang and Minghong Shi

To promote the development of renewable energy, the Chinese Government adopts the policy of Feed-in Tariff and subsidy. However, the high purchase price and the…

Abstract

Purpose

To promote the development of renewable energy, the Chinese Government adopts the policy of Feed-in Tariff and subsidy. However, the high purchase price and the intermittence limit the development of renewable energy source electricity (RES-E). The purpose of this paper is to discuss the pricing strategy for system operators to stimulate the development of the RES-E industry under the scenario of uncertain supply and demand.

Design/methodology/approach

The authors establish a two-echelon supply chain investment model led by a power grid operator considering the uncertainties in both demand and supply, and study the impact of the power purchase price designed by a system operator using Stackelberg’s model.

Findings

There is an optimal capacity for RES-E generators, that is, independent of the market demand. Besides, the optimal order of grid operators is independent of the uncertain RES-E supply and the purchase price of fossil fuel. By properly setting the purchase prices, the system operator can stimulate the capacity investment in renewable energy. Finally, increasing the punishment in power shortage can stimulate the capacity investment in RES-E under certain conditions.

Practical implications

The result of this paper can mitigate the phenomenon of power abandonment in the RES-E industry and promote the grid integration of RES-E.

Originality/value

Both uncertain demand and supply are considered in this paper. A heuristic algorithm is provided to compute the optimal purchase price combination.

Details

Industrial Management & Data Systems, vol. 118 no. 5
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 26 October 2018

Lingcheng Kong, Ling Liang, Jianhong Xu, Weisi Zhang and Weijun Zhu

Although the wind power industry has been booming in China during the last decade, the development of wind turbine aftermarket service is still lagging behind, which…

Abstract

Purpose

Although the wind power industry has been booming in China during the last decade, the development of wind turbine aftermarket service is still lagging behind, which seriously affects the operational efficiency of wind farms. If wind turbine manufacturers get involved in the aftermarket, the service pricing policy will impact the profits of both the manufacturer and the wind farm. Therefore, it is necessary to discuss an optimal service pricing strategy in the wind turbine aftermarket and design a method to improve electricity generation efficiency through service contract design. The paper aims to discuss these issues.

Design/methodology/approach

In order to decide the maintenance quantity and channel effort level, the authors design a normal Stackelberg game and an efficiency value-added revenue-sharing contract and discuss two kinds of revenue increment sharing models under situations, in which the supply chain’s leaders are the wind farm and the wind turbine manufacturer, respectively.

Findings

The results show that in either case, there exist optimal power generation revenue-sharing ratios that can maximize profit. At the same time, the authors outline an optimal service pricing policy, maintenance demand policy and channel service effort-level policy. The results summarize the influences of wind aftermarket services on wind farms’ and wind turbine manufacturers’ profit, which provides managerial insights into the process of manufacturing servitization.

Practical implications

The manufacturer’s channel effort level will influence the power generation increments very much, so the authors have developed a mechanism to stimulate the manufacturer improving the efficiency of aftermarket services.

Originality/value

Taking the power generation increment revenue as the profit increment function, the authors discuss the influence of service price on the profit increment of the wind farm and the wind turbine manufacturer and also consider the influence of service price on the wind farms maintenance quantity and wind turbine manufacturers channel effort level.

Details

Industrial Management & Data Systems, vol. 119 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 17 October 2022

Haicheng Jia, Jing Li, Ling Liang, Weicai Peng, Jiqing Xie and Jiaping Xie

The development of low-carbon production is impeded by the investment costs of green technology research and development (R&D) and carbon emission reduction while facing…

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Abstract

Purpose

The development of low-carbon production is impeded by the investment costs of green technology research and development (R&D) and carbon emission reduction while facing the uncertain risk of emission reduction investment. With the government's carbon emission constraints, green manufacturers implement the advance selling strategy to increase both profit and reduction level. However, few studies consider the consumer's green preference and emission constraints in advance selling market and spot market independently. The authors' paper investigates the optimal strategies of advance selling pricing and reduction effort for green manufacturers to maximize profits.

Design/methodology/approach

The authors' paper designs a stochastic model and investigates the manufacturer's optimal strategies of advance selling price and emission reduction efforts by categorizing different purchasing periods of low-carbon consumers. With the challenges of uncertain demand and government's emission constraints, the authors' develop the non-linear optimization model to investigate the manufacturer's profit-oriented decisions.

Findings

The results show the government's carbon constraints cannot influence the manufacturer's profit, but the consumer's low-carbon preference in the advance selling period can. Interestingly, the manufacturer will make fewer reduction efforts even when the consumers have stronger environmental awareness. In addition, the increasing consumer price sensitivity will exacerbate the profit loss from mandatory emissions reduction. Overall, for achieving a win–win situation between emission reduction and profit growth, green manufacturers should not only consider the sales strategies, market demand, and government constraints in a low-carbon market, but also pay attention to the uncertainty of green technology innovation.

Originality/value

With the consideration of the government's carbon emission constraints, uncertain demand, and low-carbon consumer's preferences, the authors' study innovatively incorporates the joint impacts of advance selling strategy and emission reduction effort strategy and then differentiates between two cases that pertain to the diverse carbon emission regulations.

Details

Industrial Management & Data Systems, vol. 122 no. 12
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 6 September 2021

Gulizhaer Aisaiti, Ling Liang, Luhao Liu, Jiaping Xie and Tingting Zhang

This paper aims to propose a social enterprise legitimation mechanism by combining the established logic and transformational logic to test the validity of the conceptual model.

Abstract

Purpose

This paper aims to propose a social enterprise legitimation mechanism by combining the established logic and transformational logic to test the validity of the conceptual model.

Design/methodology/approach

The authors construct the theoretical framework based on integrating organizational identity theory, attention-based view and collected 128 social enterprises data during the post-pandemic period in China. The authors applied multiple hierarchical regression analysis and mediation analysis to test the research hypothesis.

Findings

The results show that strong organizational identity contributes significantly to the cognitive legitimacy of social enterprise. Besides, we found that social welfare logic and digital transformation can positively mediate the correlation between organizational identity and cognitive legitimacy.

Practical implications

Social enterprises enhance legitimacy significantly by social welfare logic comparing with commercial logic, which indicates that social enterprises should allocate more internal resources and attention to present the organization's social value through various distributions. More importantly, social enterprises should embrace digital transformation to enhance transparency and efficiency, decrease transaction costs, enlarge organizational social impact to strengthen cognitive legitimacy.

Originality/value

The paper first proposed and empirically tested that digital transformation is an important mechanism to enhance the social enterprise's cognitive legitimacy.

Details

Industrial Management & Data Systems, vol. 121 no. 12
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 10 July 2017

Lingcheng Kong, Zhong Li, Ling Liang and Jiaping Xie

When the power generator faces uncertain and independent electricity spot price and renewable energy source supply, two different conditions need to be considered: the…

422

Abstract

Purpose

When the power generator faces uncertain and independent electricity spot price and renewable energy source supply, two different conditions need to be considered: the distributions of renewable energy source electricity and electricity spot price are independent or dependent. The purpose of this paper is to explore the capacity investment strategy under volatile electricity spot price when renewable energy penetration rate is low, taking into account these two conditions.

Design/methodology/approach

The authors design a capacity investment model under dual uncertainties and consider how to optimize the investment capacity in order to maximize profit under two different conditions.

Findings

The authors find that when renewable energy supply fluctuation is unrelated to spot electricity price fluctuation, the renewable energy power profitability is determined by the average cost of spot electricity price and equivalent cost. When renewable energy supply fluctuation is related to spot electricity price fluctuation, the renewable energy power profitability is determined by the market value and the construction and maintenance cost.

Practical implications

Faced with the conflict of the renewable energy supply, the authors need to understand how to plan the generation capacity with intermittent renewable sources. The result helps renewable energy become competitive in the electricity market under loose regulations.

Originality/value

The authors compare two capacity investment strategies that the renewable energy supply fluctuation is related and unrelated to spot electricity price.

Details

Industrial Management & Data Systems, vol. 117 no. 6
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 12 April 2011

Feng Dai, Jianping Qi and Ling Liang

The purpose of this paper is to reveal some basic characteristics in social and economic process, and lay the analytic foundation for advance‐retreat course (ARC).

Abstract

Purpose

The purpose of this paper is to reveal some basic characteristics in social and economic process, and lay the analytic foundation for advance‐retreat course (ARC).

Design/methodology/approach

The paper presents the analytic model of stochastic ARC (SARC), which is based on the partial distribution and partial process (belonging to the probability theory and stochastic process), and describes some important characteristics of social and economic process in a quantitative method.

Findings

The successful socio‐economic process, including many biological process, are usually divided into three basic stages: the weak growth, the quick development and the swift decline. In general, rapid growth brings with it the weak persistence, and slow growth brings with it the strong persistence. The socio‐economic fluctuations are mainly caused by the excessive environmental pressures. The duration of the socio‐economic growth is inverse with the environmental pressure.

Research limitations/implications

All the basic variables and parameters in an ARC model should be no less than zero.

Practical implications

Based on US GDP (chained) price index data (1940‐2005), American economic process in recent 70 years is analyzed, and the analysis indicates, American economic motivity is clearly insufficient after 2008, and the present economic recovery will be very arduous and prolonged.

Social implications

The environmental pressures will become the main problem for future global socio‐economic development.

Originality/value

SARC model in this paper presents a special way to analyze the social development and economic growth, and is helpful to related academic research and socio‐economic decision making.

Details

International Journal of Social Economics, vol. 38 no. 5
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 13 April 2015

Jiaping Xie, Zhong June Li, Yong Yao and Ling Liang

The purpose of this paper is to investigate the dynamic acquisition pricing strategy for collecting used products (also known as cores or returns) in a finite planning…

Abstract

Purpose

The purpose of this paper is to investigate the dynamic acquisition pricing strategy for collecting used products (also known as cores or returns) in a finite planning horizon. In particular, this paper studies a cost-minimization model in which a firm offers acquisition price that impacts the quantity of the returns, and remanufactures the used product to satisfy the customer demand.

Design/methodology/approach

This paper uses multi-period stochastic dynamic programming theory to model a remanufacturing system that faces the random demand for remanufactured products. The number of the returns at each period is uncertain and increases linearly with the acquisition price offered.

Findings

The study shows that when the uncertainty of demand for remanufactured products increases, the remanufacturer should hold a higher core stock level to minimize the expected total cost and thus a higher acquisition price is needed to attract returns. However, given demand uncertainty, the optimal price decreases in the initial core stock level in each period. It also indicates that the optimal acquisition price increases in the variance of the returns, but decreases in the mean of the returns.

Practical implications

The findings suggest that a remanufacturer could reduce the expected total cost by adjusting the acquisition price according to the number of returns periodically.

Originality/value

Introducing the impact of supply uncertainty on the acquisition price of used products, this paper uses a multi-period dynamic model, instead of single period model in previous studies, to examine the remanufacturer’s dynamic acquisition pricing policy.

Details

Industrial Management & Data Systems, vol. 115 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

Book part
Publication date: 10 August 2017

Riddhi Bhandari

This chapter examines how the everyday interactions that are fostered with the circulation of debt impact the socioeconomic order in which they operate. Employing the…

Abstract

Purpose

This chapter examines how the everyday interactions that are fostered with the circulation of debt impact the socioeconomic order in which they operate. Employing the theoretical framework of “circuits of commerce,” scholars have examined how social relations and economic activities intertwine, are negotiated and transformed through the circulation of debt. The focus of such studies has been on the motives of actors, such as the desire for relationship-making, and structural conditions, like the inaccessibility of formal institution, that necessitate the emergence of debt-centered circuits of commerce (Hampton, 2003; Heslop, 2016; James, 2014). However, such circuits also have broader impacts and affect socially pervasive moral evaluations and work cultures (Ho, 2009; Zelizer, 2011). Building on these findings, I examine commission-based alliances among showroom owners and tour guides in Agra’s tourism market to understand how “bad debt” between them shapes Agra’s local tourism economy.

Methodology/approach

This chapter is based on ethnographic research conducted in 2012–2013 with Agra’s tourism entrepreneurs, like showroom owners, tour guides, and convincers.

Findings

Entrepreneurs’ everyday practices around the circulation of debt impact how tourism in Agra is perceived and conducted. Although debt is initiated to mitigate uncertainty of getting clientele, its circulation exacerbates that very uncertainty.

Originality/value

This chapter contributes to the theory of economic practice, highlighting how economic actors, through their everyday practices, shape the macro-structure of the economic system in which they operate.

Details

Anthropological Considerations of Production, Exchange, Vending and Tourism
Type: Book
ISBN: 978-1-78743-194-2

Keywords

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