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Article
Publication date: 28 November 2022

Cuijuan Liu, Zhenxin Xiao, Yu Gao, Maggie Chuoyan Dong and Shanxing Gao

Although manufacturer-initiated rewards are widely used to secure distributors’ compliance, the spillover effect on unrewarded distributors (i.e. observers) in the same…

Abstract

Purpose

Although manufacturer-initiated rewards are widely used to secure distributors’ compliance, the spillover effect on unrewarded distributors (i.e. observers) in the same distribution channel is under-researched. Using insights from social learning theory, this paper aims to investigate how manufacturer-initiated rewards affect observers’ expectation of reward and shape observers’ compliance toward the manufacturer. Furthermore, this paper explores how such effects are contingent upon distributor relationship features.

Design/methodology/approach

To test the hypotheses, hierarchical multiple regression and bootstrapping analyses were performed using survey data from 280 Chinese distributors.

Findings

The magnitude of a manufacturer-initiated reward to a distributor stimulates expectation of reward among observers, which enhances compliance; observers’ expectation of reward mediates the impact of reward magnitude on compliance. Moreover, network centrality (of the rewarded peer) negatively moderates the positive impact of reward magnitude on observers’ expectation of reward, whereas observers’ dependence (on the manufacturer) positively moderates this dynamic.

Practical implications

Manufacturers should pay attention to the spillover effects of rewards. Overall, they should use rewards of appropriate magnitude to show willingness to recognize outstanding distributors. This will inspire unrewarded distributors, which will then be more compliant. Furthermore, manufacturers should know that specific types of distributor relationship features may significantly vary the spillover effects.

Originality/value

This study illuminates the spillover effects of manufacturer-initiated reward by opening the “black box” of the link between reward magnitude and observers’ compliance and by specifying the effects’ boundary conditions.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

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…

48

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: 24 October 2022

Ping Shi, Kun Han and Rui Hou

With the global spread of environmental education, environmental awareness is becoming increasingly important in daily life and economic activities. Sustainable…

Abstract

Purpose

With the global spread of environmental education, environmental awareness is becoming increasingly important in daily life and economic activities. Sustainable development, as the most effective development approach to address global climate change, has gradually become a research hotspot in countries around the world. The authors combine sustainable development with supply chain management and incorporate into the study the objective issue of corporate fairness preferences in real society to explore the pricing and product greenness decision problem of a secondary sustainable supply chain consisting of a manufacturer producing green products and a retailer selling green products. In particular, the authors explore how supply chain decisions change when both the manufacturer and the retailer focus on fairness and how this fairness behavior affects pricing and product greenness decisions in sustainable supply chains.

Design/methodology/approach

The authors consider that the manufacturers' greening efforts lead to expanded demand at the retail end. Upstream and downstream firms in the supply chain have preferences for the fairness of transactions. The impact of the fairness behavior of upstream and downstream firms in the supply chain on supply chain decisions is explored by building a Stackelberg game model.

Findings

The results of this study show that the fairness concern behavior of manufacturers and retailers in the supply chain has an impact on product greenness, product pricing and corporate profits.

Originality/value

This study on the fairness concern behavior of supply chain firms integrates behavioral economics and supply chain management. First, the authors consider the equilibrium problem of supply chain members in the centralized channel when there are no fairness preferences. Second, the decision problem of firms in the decentralized channel when fairness is considered and when fairness preferences are not considered is explored. The authors compare these three cases to derive the corresponding propositions. Finally, the authors verify the previous conclusions and draw other conclusions using arithmetic analysis.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 17 August 2012

He Lifang and Chen Hongzhuan

The purpose of this paper is to find an incentive strategy to enhance the interests of the main manufacturer by inducing the suppliers to conflict the fixed incentive…

190

Abstract

Purpose

The purpose of this paper is to find an incentive strategy to enhance the interests of the main manufacturer by inducing the suppliers to conflict the fixed incentive provided by the main manufacturer.

Design/methodology/approach

The main manufacturer‐supplier model is widely applied in the R&D procedure of complex products such as aeroplanes. Because of the uncertainty in the R&D, the effort of the suppliers has an important effect on it. Considering the dynamic interaction between the main manufacturers and suppliers, with the main manufacturers as leaders and suppliers as followers, this paper establishes a Grey‐Stackelberg model to analyze the best change of the incentive strategies of the main manufacturers and the effort strategies under incentive‐conflict of suppliers under the uncertain environment. A numeric example is also computed in the last part of the paper.

Findings

The results show that the main manufacturer can increase its benefit without damaging the interests of suppliers by controlling the fixed incentives.

Originality/value

The paper succeeds in establishing the Grey‐Stackelberg model by analysing the grey area among the main manufacturer and the suppliers, and helps to develop grey systems theory.

Article
Publication date: 1 July 1997

Jack M. Cadeaux

Suggests that gaps exist between the product ranges or lines offered by manufacturers and the assortments selected and stocked by retailers. Looks at the extent to which…

764

Abstract

Suggests that gaps exist between the product ranges or lines offered by manufacturers and the assortments selected and stocked by retailers. Looks at the extent to which differing levels of “product volatility” affect retailers’ selectivity in stocking items from a manufacturer’s line. Provides a limited test of several hypotheses about how the degree of product volatility of the category within which a manufacturer’s line belongs might affect the number of items in the line that will be stocked by a retailer. Analysis of stock‐planning data for two retailers in each of two product categories offers some support for the hypotheses. Interprets these results in light of theories of distribution channel co‐ordination and retailer expertise. They may reflect an alternative explanation for widely observed increases in retailer power.

Details

International Journal of Retail & Distribution Management, vol. 25 no. 6
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 1 February 1993

Sydney Roslow, Henry A. Laskey and J.A.F. Nicholls

Cooperative advertising is intended for the mutual benefit ofchannel partners. Shows that manufacturers and dealers/distributors inthe boating industry view this marketing…

Abstract

Cooperative advertising is intended for the mutual benefit of channel partners. Shows that manufacturers and dealers/distributors in the boating industry view this marketing activity very differently. Manufacturers see no connection between cooperative advertising and other aspects of the relationships with their dealers. On the other hand, dealers relate their views of cooperative advertising to other facets of their relationships with manufacturers. Consequently, when there is conflict over cooperative advertising, it is liable to have a negative effect on other arrangements that dealers have with manufacturers. Manufacturers may not understand how negativity creeps into other relationships between dealers and themselves.

Details

Journal of Business & Industrial Marketing, vol. 8 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 4 October 2022

Ying Zhang, Zelong Wei and Jie Gao

To enhance the value of servitization in customers’ problem-solving, this study aims to examine and compare the effects of manufacturers’ service breadth and depth…

Abstract

Purpose

To enhance the value of servitization in customers’ problem-solving, this study aims to examine and compare the effects of manufacturers’ service breadth and depth strategies on their customer-based performance. It also explores how these effects are influenced by technological turbulence and a manufacturer’s supply chain position.

Design/methodology/approach

Based on data collected from 208 Chinese manufacturers, this study uses a three-stage least square approach to test the hypotheses focusing on the effects of manufacturers’ service strategies on customer-based performance and the moderating roles of technological turbulence and supply chain position.

Findings

The study reveals that manufacturers’ service depth has a significant positive effect on their customer-based performance. However, service breadth has an insignificant effect on the performance. Furthermore, technological turbulence positively moderates the effects of both service breadth and depth, and supply chain position only positively moderates the effect of service depth.

Practical implications

Manufacturers should focus on increasing service depth to improve their customer-based performance. Manufacturers in technically turbulent environments can attain ample benefits from both service breadth and depth, and those located downstream in a supply chain can benefit more from service depth.

Originality/value

By bringing a problem-solving perspective into the servitization literature, this study adds empirical insights to the impact of manufacturers’ service breadth and depth strategies on customer outcomes. The study also answers calls for insights into the environmental and structural contingencies of servitization.

Details

Supply Chain Management: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 7 September 2022

Fei Yan, Hong-Zhuan Chen and Zhichao Zhang

Industry practice has shown that technology licensing has an important effect on the R&D cooperation between firms. Different licensing methods will significantly impact a…

Abstract

Purpose

Industry practice has shown that technology licensing has an important effect on the R&D cooperation between firms. Different licensing methods will significantly impact a supply chain member's cooperative and price R&D decisions. However, there is scant literature investigating the decision on technology licensing and its impact on a supply chain member's price and cooperative R&D decisions. To address this gap, the authors investigate the R&D cooperation and the technology licensing in a supply chain formed of an original equipment manufacturer (OEM), a contract manufacturer (CM), and a third-party manufacturer which will compete with the OEM when the technology licensing occurs.

Design/methodology/approach

The authors investigate two licensing patterns, royalty licensing, fixed fee licensing together with the no licensing, within the R&D cooperative supply chain by developing two three-stage and a two-stage Stackelberg models.

Findings

Compare to the no licensing strategy, technology licensing always benefits to the OEM and the society especially when the technology efficiency and the brand power of the third-party manufacturer are more significant; the royalty licensing benefits to the OEM more when the technology efficiency and the brand power of the third-party manufacturer are higher; the fixed fee licensing benefits to the OEM more when the technology efficiency and the brand power of the third-party manufacturer are lower.

Practical implications

The royalty licensing is more effective for mitigating price competition intensity and helping firms to maintain higher sales margins; the fixed fee licensing induces firms' lower sales margins but increases the firms' sales quantities; in most cases, the fixed fee licensing is optimal from the perspectives of consumer and society, however, the CM's investment intention to the R&D technology with the fixed fee licensing is lower.

Originality/value

So far, different licensing models under the R&D cooperation have not been investigated, and the authors propose two three-stage Stackelberg models with considering the competition caused by technology licensing under the R&D cooperation to deal with the cooperative R&D and technology licensing issues.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 10 October 2022

Christopher Newman, David Gligor and Yoon-Na Cho

The authors explored the impact of a popular supply chain collaboration initiative – the shopper solution – on both retailers and manufacturers, as well as on the shopper.

Abstract

Purpose

The authors explored the impact of a popular supply chain collaboration initiative – the shopper solution – on both retailers and manufacturers, as well as on the shopper.

Design/methodology/approach

The authors conducted a quasi-experimental field study, an experimental online study and an experimental behavioral lab study.

Findings

Overall, results revealed that shopper solutions increase the quantity and breadth of displayed products sold, along with sales totals. Shoppers also expressed higher willingness-to-pay (WTP) for products displayed in solutions. Shoppers positively (negatively) attributed the presence (absence) of solutions more strongly to retailers than to manufacturers due to perceived differences in manufacturers' concern for shoppers. Specifically, shoppers expressed higher (lower) word-of-mouth (WOM) and loyalty intentions toward retailers than manufacturers when solutions were (not) provided.

Originality/value

The authors provide a more holistic view of supply chain collaboration by showing how different chain members (retailers vs manufacturers) can experience disparate benefits from collaboration. The authors explain this within the context of shopper solutions by demonstrating that differences in perceived concern for shoppers underlies these effects. Thus, findings suggest that shopper marketing initiatives, such as solutions, are not always “win-win-win” outcomes for retailers, manufacturers and shoppers as intended. Overall, this is the first research to assess the implications of shopper solutions for retailers, manufacturers and shoppers, alike.

Details

The International Journal of Logistics Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0957-4093

Keywords

Book part
Publication date: 30 December 2004

Glenn Hoetker

Our understanding of Japanese supply relationships comes primarily from studying the automobile industry. This paper identifies three elements of the automobile industry…

Abstract

Our understanding of Japanese supply relationships comes primarily from studying the automobile industry. This paper identifies three elements of the automobile industry that, although generally assumed to be widespread, are largely absent in the notebook computer industry, leading to a different pattern of supply relationships: a sizable pool of external suppliers; the feasibility of shukko and cross-shareholding to strengthen supply relationships; and the adequacy of these means to manage external supply relationships. This finding debunks the myth of a monolithic model of “Japanese-style” supply relationships and illustrates the importance of idiosyncratic elements of an industry’s environment on its supply relationships.

Details

Japanese Firms in Transition: Responding to the Globalization Challenge
Type: Book
ISBN: 978-0-76231-157-6

1 – 10 of over 62000