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Article
Publication date: 5 September 2024

Jiami Liang, Jiejian Feng and Yalan Liu

This paper aims to study how the timing of these decisions affects the total profit and the individual profits of the two agents.

Abstract

Purpose

This paper aims to study how the timing of these decisions affects the total profit and the individual profits of the two agents.

Design/methodology/approach

This paper study a supply chain for a network good where there is a manufacturer and a retailer. The manufacturer determines its wholesale price and its share in the retailer’s advertising cost while the retailer decides the retail price and the advertising cost.

Findings

This paper finds that a stronger network externality leads to higher prices and higher advertising efforts. This increases the profits of both manufacturer and retailer, but the manufacturer’s share of advertising costs depends on the order in which the supply chain enterprise make their decisions, the strength of network externality and the effect of advertising determines which decision timeline results in a higher price and greater advertising effort. The manufacturer prefers the price decision to be made before the advertising decision, while the retailer prefers these decisions to be made simultaneously.

Research limitations/implications

Although this paper studies the price and advertising decision-making order preferences of channel members based on network externalities, this research can also be expanded from the following aspects based on network effects. First, network externality affects advertising cooperation between both parties in the situation such that the pricing power of retail prices is transferred from the retailer to the manufacturer and the retailer relies on revenue sharing (revenue sharing contract, nonwholesale price contract. Second, the manufacturer dominates the issues in the supply chain, but in reality, a retailer can also be the dominator or there are no dominators (Nash equilibrium). Finally, it is possible to consider pricing and advertising decisions in situations where two manufacturers or retailers compete.

Practical implications

When the price is reasonable, advertising investment is the main determinant of product sales. The greater the intensity of network externalities the more retailers will be willing to invest in advertising. An increase in the intensity of network externalities may not necessarily enhance manufacturers’ motivation or cooperative advertising, but it depends on the decision-making sequence. The strength of network externalities determines the decision-making sequence preferences of supply chain channel members whose preferences vary leading to conflicts of interest.

Originality/value

The impact of cooperative advertising or decision sequence on corporate decision-making has not been considered. To fill this gap, the paper integrates network externality and supply chain cooperative advertising models, focusing on the impact of network externality on pricing and advertising decisions, as well as on the sequence of decisions.

Details

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

Keywords

Open Access
Article
Publication date: 13 May 2024

Khaled Abed Alghani, Marko Kohtamäki and Sascha Kraus

The proliferation of industry platforms has disrupted several industries. Firms adopting a platform business model have experienced a substantial expansion in size and scale…

Abstract

Purpose

The proliferation of industry platforms has disrupted several industries. Firms adopting a platform business model have experienced a substantial expansion in size and scale, positioning themselves as the foremost valuable entities in market capitalization. Over the past two decades, there has been a substantial expansion in the body of literature dedicated to platforms, and different streams of research have emerged. Despite considerable efforts and the significant progress made in recent years toward a comprehensive understanding of industry platforms, there is still room for further harnessing the field’s diversity. As a result, the aim of this article is to examine the field’s structure, identify research concerns and provide suggestions for future research, thereby enhancing the overall understanding of industry platforms.

Design/methodology/approach

We conducted a thorough examination of 458 articles on the topic using bibliometric methods and systematic review techniques.

Findings

Through co-citation analysis, we identified five distinct clusters rooted in various bodies of literature: two-sided markets, industry platforms, digital platforms, innovation platforms and two-sided networks. Furthermore, the examination of these five clusters has revealed three key areas that demand further consideration: (1) terminologies, (2) classifications and (3) perspectives.

Originality/value

While previous reviews have provided valuable insights into the topic of industry platforms, none have explored the structure of the field so far. Consequently, as a first step toward advancing the field, we uncover the structure of the literature, identifying three major areas of concern. By addressing these concerns, our goal is to converge different clusters, thereby harnessing the diversity in the field and enhancing the overall understanding of industry platforms.

Details

European Journal of Innovation Management, vol. 27 no. 9
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 15 July 2024

Guangkuan Deng, Jianyu Zhang, Ying Xu and Lijuan He

The integration of e-commerce platforms and artificial intelligence (AI) into the marketing channel ecosystem is challenging the explanatory capacity of traditional channel power…

Abstract

Purpose

The integration of e-commerce platforms and artificial intelligence (AI) into the marketing channel ecosystem is challenging the explanatory capacity of traditional channel power theories, indicating a significant yet unaddressed research gap concerning the impact of these digital entities and AI on channel power exercise dynamics. This study adopts a contingency perspective to critically revisit how e-commerce platforms exercise channel power and the ensuing effects on channel conflicts. The purpose of this study is to extend the boundaries of traditional channel power theories, enhancing their relevance in today’s digital marketplace.

Design/methodology/approach

Building on channel power theories, the authors developed a framework tested with survey data collected from 262 sellers. This framework incorporates three key contingent variables: inter-platform competition, AI capabilities and platform value co-creation. Regression analysis was used to perform the analyses.

Findings

This study finds that intense inter-platform competition mitigates the (positive) negative relationship between platform channel power and the exercise of (non-) coercive power. Moreover, a platform’s AI capabilities and value co-creation activities diminish the potential for channel conflicts induced by the exercise of coercive power. AI capabilities can also strengthen the negative relationship between the exercise of non-coercive power and channel conflicts.

Originality/value

This study contributes to the advancement of traditional channel power theories by integrating contemporary digital elements like AI and platform dynamics. This study provides theoretical and practical insights on navigating channel power in modern marketing environments, offering strategic guidelines for optimizing channel relationships.

Details

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

Keywords

Article
Publication date: 23 August 2024

Nandini Nim, Kiran Pedada and Kelly Hewett

This article aims to provide greater clarity regarding the conceptualization and critical role of digital marketing ecosystems for the global expansion of multinational…

Abstract

Purpose

This article aims to provide greater clarity regarding the conceptualization and critical role of digital marketing ecosystems for the global expansion of multinational enterprises (MNEs) and offer novel research directions to prompt future research.

Design/methodology/approach

The authors first review the marketing literature related to marketing ecosystems, highlighting the evolution of this body of work across a range of domains such as services, innovation and new product development, communications and marketing strategy more broadly. Next, two case examples of MNEs whose global expansion efforts have been supported by their marketing ecosystems are used to highlight the role of marketing ecosystems in global market expansion. Finally, novel research directions are offered to prompt future research and provide greater insight into this emerging area.

Findings

The case examples we examine yield important insights into the role of marketing ecosystems for MNEs expanding from emerging markets (EMs) to developed markets (DMs). EM-MNEs such as TEMU face more communication and payment ecosystem challenges while opening their supply chain to DMs. Contrary to EM-MNEs, DM-MNEs face institutional and sociocultural challenges that require different marketing ecosystem orchestration approaches.

Originality/value

Marketing ecosystems can provide MNEs with greater multinational flexibility, enabling them to adapt their global strategies to navigate increasing complexities in global markets, such as trends toward increased protectionism and geopolitical disruptions. However, there is surprisingly little research addressing this issue.

Details

International Marketing Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 26 June 2024

Junxia Yuan, Renhuai Liu and Yuanyang Zou

A new model for two-sided platforms is presented, incorporating both the original business and an expanded (new) business. Previous studies have neglected the impact of technology…

Abstract

Purpose

A new model for two-sided platforms is presented, incorporating both the original business and an expanded (new) business. Previous studies have neglected the impact of technology R & D on the new business aspect of two-sided platforms. This study addresses this gap by examining the technology R & D effect on the new business while also considering the congestion effect on the original business. It investigates the optimal pricing and user scales for both the original and new businesses. Additionally, the profits of the original business, the new business, and the overall two-sided platform are analyzed.

Design/methodology/approach

Previous studies have overlooked the technology R & D effect on the new business aspect of two-sided platforms. Therefore, this study focuses on examining the technology R & D effect on the new business. Additionally, the congestion effect on the original business is considered. To determine the optimal prices for both sides of the original and new businesses, a game sequence model is introduced.

Findings

The optimal price on the service buyers (defined b side) of new business increases only with regard to technology R & D effect on b side of new business increasing. The optimal price on b side of new business is equal to half of the b-side R & D effect. The optimal profit of original business decreases with regard to the technology R & D effect of new business and cross-market network effect on the services provider (defined s side) between original business and new business increasing, respectively. To gain optimal profit of two-sided platform, the two-sided platform adopts some strategies to improve the congestion.

Originality/value

A new two-sided platform model is stated, in which the technology R & D effect is embraced. The expanded business scenario of two-sided platform is considered, that is, the two-sided platform has one business firstly and a new business is developed or improved of two-sided platform. To solve the prices strategy of original business and new business, a game sequence of the original business and new business is presented.

Details

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

Keywords

Open Access
Article
Publication date: 14 August 2024

Mahsa Fekrisari and Jussi Kantola

This paper aims to identify potential barriers to Industry 4.0 adoption for manufacturers and examine the changes that must be made to production processes to implement Industry…

Abstract

Purpose

This paper aims to identify potential barriers to Industry 4.0 adoption for manufacturers and examine the changes that must be made to production processes to implement Industry 4.0 successfully. It aims to develop technology by assisting with the successful implementation of Industry 4.0 in the manufacturing process by using smart system techniques.

Design/methodology/approach

Multiple case studies are used in this paper by using the smart system and Matlab, and semi-structured interviews are used to collect qualitative data.

Findings

Standardization, management support, skills, and costs have been cited as challenges for most businesses. Most businesses struggle with data interoperability. Complexity, information security, scalability, and network externalities provide challenges for some businesses. Environmental concerns are less likely to affect businesses with higher degrees of maturity. Additionally, it enables the Technical Director’s expertise to participate in the measurement using ambiguous input and output using language phrases. The outcomes of the numerous tests conducted on the approaches are extensively studied in the provided method.

Originality/value

In this research, a multiple-case study aims to carry out a thorough investigation of the issue in its actual setting.

Details

The TQM Journal, vol. 36 no. 9
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 8 August 2024

Susanne Gretzinger, Susanne Royer and Birgit Leick

This conceptual paper aims to contribute to a better understanding of value creation and value capture with smart resources in the Internet of Things (IoT)-driven business models…

Abstract

Purpose

This conceptual paper aims to contribute to a better understanding of value creation and value capture with smart resources in the Internet of Things (IoT)-driven business models against the backdrop of an increasingly networked and connectivity-based environment. More specifically, the authors screen strategic management theories and adapt them to the specificities of new types of smart resources by focusing on a conceptual analysis of isolating mechanisms that enable value creation and value capture based upon different types of smart resources.

Design/methodology/approach

By adapting the state of the art of the contemporary resource-based discussion (resource-based view, dynamic capabilities view, relational view, resource-based view for a networked environment) to the context of IoT-driven business models, the paper typifies valuable intra- and inter-organisational resource types. In the next step, a discursive discussion on the evolution of isolating mechanisms, which are assumed to enable the translation of value creation into value appropriation, adapts the resource-based view for a networked environment to the context of IoT-driven business models.

Findings

The authors find that connectivity shapes both opportunities and challenges for firms, e.g. focal firms, in such business models, but it is notably social techniques that help to generate connectivity and transform inter-organisational ties into effective isolating mechanisms.

Originality/value

This paper lays a foundation for a theoretically underpinned understanding of how IoT can be exploited through designing economically sustainable business models. In this paper, research propositions are established as a point of departure for future research that applies strategic management theories to better understand business models that work with the digitisation and connectivity of resources on different levels.

Details

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

Keywords

Article
Publication date: 27 September 2024

Jian Li, Di Peng and Yue Yu

This paper investigates the impact of strategic alliance network centrality and structural holes on firm innovation efficiency. In addition, the paper aims to explore the…

Abstract

Purpose

This paper investigates the impact of strategic alliance network centrality and structural holes on firm innovation efficiency. In addition, the paper aims to explore the moderating effects of government R&D subsidies and firm technology standardization.

Design/methodology/approach

Based upon the literature on strategic alliance networks, this paper proposes a conceptual model with several hypotheses. The empirical analysis is based on a sample of 736 observations from 92 mechanical manufacturing firms in China from 2010 to 2017. We measured firm innovation efficiency via the DEA model and performed quantitative analysis with GMM estimation.

Findings

The results indicate that strategic alliance network centrality is positively related to firm innovation efficiency, and structural holes have a U-shaped relationship with firm innovation efficiency. Government R&D subsidies positively moderate the relationship between centrality and firm innovation efficiency. Firm technology standardization positively moderates the relationship between centrality and firm innovation efficiency and the U-shaped relationship between structural holes and firm innovation efficiency.

Practical implications

Firms should focus on improving innovation efficiency and maximizing innovation output under limited resources. Furthermore, managers ought to strengthen cooperation between firms and external alliances while promoting the utilization of strategic alliance network position resources to benefit innovation efficiency.

Originality/value

This paper considers that innovation efficiency, including input and output processes, is more representative than innovation performance, and few studies have focused on the relationship between strategic alliance networks and innovation efficiency. To fill this research gap, this paper explores the impact of strategic alliance network position embedding on innovation efficiency.

Details

Business Process Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 2 August 2024

Xiaoling Chen, Caiyun Shen and Wenying Zheng

Circular economy firms, unlike those in a linear economy, encounter significant challenges due to the nature of nonstandardized products, such as asymmetric information on product…

Abstract

Purpose

Circular economy firms, unlike those in a linear economy, encounter significant challenges due to the nature of nonstandardized products, such as asymmetric information on product specifications and highly dispersed supply and demand. Consequently, achieving large-scale operations becomes inherently difficult for them. However, when digital platform-based circular firms adopt diversified business models, their value creation has the potential to achieve significant scale. This study aims to answer “How do digital platform-based circular firms scale up value creation through business model diversification?”.

Design/methodology/approach

The authors use a qualitative case study design with a longitudinal (2011–2023) analysis of the various business models developed by ATRenew, a leading firm in the Chinese preowned electronics industry.

Findings

The authors find that the recycling business model can act as a “cornerstone” business model for a circular firm to integrate the business model portfolio by leveraging the most synergies (or complementarities) with other business models. Besides, digital platform-based circular firms can effectively scale up value creation by leveraging capability complementary on the supply side, through establishing industrial infrastructure shared with the platform ecosystem; and by leveraging customer complementary on the demand side, through activating the dual role played by platform users as suppliers and consumers.

Originality/value

The authors contribute to the circular business models literature with three mechanisms to scale up circular value creation through business model diversification and advance a set of propositions to be tested in future research. This also has important practical implications for circular economy platform businesses.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 16 February 2024

Noha Emara and Raúl Katz

The purpose of this study is to use the structural model to determine the influence of mobile telecommunication on Egypt’s economic growth from 2000 to 2009. By focusing on mobile…

Abstract

Purpose

The purpose of this study is to use the structural model to determine the influence of mobile telecommunication on Egypt’s economic growth from 2000 to 2009. By focusing on mobile unique subscribers and mobile broadband-capable device penetration as indicators of telecommunications adoption, the authors seek to understand their overarching effects on the nation’s economic landscape.

Design/methodology/approach

The paper uses quarterly time-series data set over the period 2000–2019 and uses a structural econometric model based on an aggregate production function, a demand function, a supply function and an infrastructure function to detect causality and examine long-run relationships between variables.

Findings

The findings of the structural model reveal that both mobile unique subscribers and mobile broadband-capable device penetration significantly contributed to Egypt’s gross domestic product (GDP) growth from 2000 to 2019. Specifically, a 1% increase in mobile unique subscriber penetration and mobile broadband-capable device adoption is estimated to result in an average annual contribution to GDP growth of 0.172% and 0.016%, respectively.

Research limitations/implications

The scarcity of panel data is the main research limitation for comparative study with other Middle East and North African Region (MENA) countries. Research extensions would include testing the significance of complementarities such as improving governance measures and building human capacity for both households and firms, which are necessary to boost the impact of telecommunication on economic growth in the MENA region.

Practical implications

Based on these findings, the study puts forth policy recommendations aimed at maximizing investment in network utilization, including mobile and internet services, as well as fixed broadband subscriptions. It highlights the crucial role of these investments in promoting social and economic development, not only in Egypt but also across the MENA region as a whole.

Social implications

The findings of this research emphasize the importance of strategic investments in network utilization, encompassing mobile, internet services and fixed broadband subscriptions. Such investments are pivotal for fostering social and financial inclusion. The study underscores the potential of these investments to drive social and economic progress, not just within Egypt but throughout the entire MENA region.

Originality/value

Overall, existing literature generally supports the notion that the telecommunications sector has a positive economic impact. However, there is a gap in the literature when it comes to understanding the specific effects of the Egyptian telecommunications sector on the country’s economy, particularly in relation to the Egypt Vision 2030. The study aims to fill this gap by focusing specifically on Egypt and providing additional insights into the direct and indirect effects of the Egyptian telecommunications sector on the economy. By conducting a thorough analysis of the sector’s role, the authors aim to contribute to the existing literature by providing context-specific findings and recommendations.

Details

Digital Policy, Regulation and Governance, vol. 26 no. 5
Type: Research Article
ISSN: 2398-5038

Keywords

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