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Article
Publication date: 4 July 2023

Ting Tang, Haiyan Xu, Kebing Chen and Zhichao Zhang

The purpose of the study is to investigate the financing channels and carbon emission abatement preferences of supply chain members, and further examine the optimal contract…

Abstract

Purpose

The purpose of the study is to investigate the financing channels and carbon emission abatement preferences of supply chain members, and further examine the optimal contract design of the retailer.

Design/methodology/approach

This paper develops a low-carbon supply chain composed of one retailer and one manufacturer, in which the retailer provides trade credit to the manufacturer. Considering the cap-and-trade regulation, the manufacturer with uncertain yield makes decision on whether to invest in emission abatement. There are bank loan and trade credit to finance production for the manufacturer and green credit to finance emission abatement investment. Meanwhile, the retailer may provide the manufacturer with three kinds of contracts to improve emission abatement efficiency, namely, revenue sharing, cost sharing or both sharing.

Findings

The results show that the retailer prefers to offer financing service at lower interest rate, but trade (and green) credit financing is always optimal for manufacturer and supply chain. The investment in emission abatement is value-added to all players. The sharing contracts offered by the retailer at lower sharing ratios can realize Pareto improvement of the system regardless of the financing scheme. However, comparing with the revenue or cost sharing contract, the existence of optimal sharing ratios makes the both sharing contract more favorable to the retailer.

Practical implications

The findings provide guidance for the emission-dependent manufacturer in financing and emission abatement decisions, as well as recommendations for the retailer to offer loan service and sharing contract.

Originality/value

This paper integrates green credit into bank loan or trade credit to analyze the financing decision of the manufacturer with uncertain yield and further considers the influence of three kinds of sharing contracts introduced by the retailer on improving operational performance.

Details

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

Keywords

Article
Publication date: 22 August 2023

Lei Cui

The construction industry has long been criticized for unethical conduct. The owner usually manages the contractor's opportunistic behaviors by employing a professional…

Abstract

Purpose

The construction industry has long been criticized for unethical conduct. The owner usually manages the contractor's opportunistic behaviors by employing a professional supervisor, but there is a risk of covert collusion between the supervisor and contractor. Based on the principal–agent theory and collusion theory, this paper aims to investigate optimal collusion-proof incentive contracts.

Design/methodology/approach

This paper presents a game-theoretic framework comprising an owner, supervisor and contractor, who interact and pursue maximized self-profits. Built upon the fixed-price incentive contract, cost-reimbursement contract, and revenue-sharing contract, different collusion-proof incentive contracts are investigated. A real project case is used to validate the developed model and derived results.

Findings

This paper shows that the presence of unethical collusion undermines the owner's interests. Especially, the possibility of agent collusion may induce the owner to abandon extracting quality information from the supervisor. Furthermore, information asymmetry significantly affects the construction contract selection, and the application conditions for different incentive contracts are provided.

Research limitations/implications

This study still has some limitations that deserve further exploration. First, this study explores contractor–supervisor collusion but ignores the possibility of the supervisor abusing authority to extort the contractor. Second, to focus on collusion, this paper ignores the supervision costs. What's the optimal supervision effort that the owner should induce the supervisor to exert? Finally, this paper assumes that the colluders involved always keep their promises. However, what if the colluders may break their promises?

Practical implications

Several collusion-proof incentive contracts are explored in a project management setting. The proposed incentive contracts can provide the project owner with effective and practical tools to inhibit covert collusion in construction management and thus safeguard construction project quality.

Originality/value

This study expands the organization collusion theory to the field of construction management and investigates the optimal collusion-proof incentive contracts. In addition, this study is the first to investigate the effects of information asymmetry on contract selection.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 16 April 2024

Richard Tarpey, Jinfeng Yue, Yong Zha and Jiahong Zhang

The importance of service firms cooperating with digital platforms is widely acknowledged. The authors study three contractual relationships (fixed-cost, cost-sharing, and…

Abstract

Purpose

The importance of service firms cooperating with digital platforms is widely acknowledged. The authors study three contractual relationships (fixed-cost, cost-sharing, and profit-sharing) between service firms (specifically hotels) and digital platforms in a highly fragmented service supply chain to examine which of these contract types optimizes profits.

Design/methodology/approach

The authors extend prior models analyzing the optimal expected total profit from the travel service firm (hotel)–digital platform relationship, providing new insights into each contract type’s ability to coordinate decentralized systems and optimize profits for both parties.

Findings

This study finds that fixed cost contracts cannot coordinate the decentralized system. Cost-sharing contracts can coordinate the decentralized system but only allow one channel profit split. In contrast, profit-sharing contracts may not always perfectly coordinate the decentralized system but support alternative profit allocations. Practically, both profit-sharing and cost-sharing contracts are preferable to fixed-cost contracts.

Practical implications

The paper includes implications for travel service firm managers to consider when structuring contracts with digital platforms to focus on profit optimization. Profit-sharing contracts are most preferable when cost and revenue data are fully shared between parties, while cost-sharing contracts are preferable over fixed-cost contracts.

Originality/value

This study extends prior investigations into the utility of different contract types on the optimal profit of a travel service firm (hotel)-digital platform provider relationship. The research fills a gap in the literature concerning the contracts used in these relationship types.

Details

Journal of Service Theory and Practice, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 5 February 2024

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.

Details

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

Keywords

Article
Publication date: 12 March 2024

Yanping Liu, Bo Yan and Xiaoxu Chen

This paper studies the optimal decision-making and coordination problem of a dual-channel fresh agricultural product (FAP) supply chain. The purpose is to analyze the impact of…

Abstract

Purpose

This paper studies the optimal decision-making and coordination problem of a dual-channel fresh agricultural product (FAP) supply chain. The purpose is to analyze the impact of information sharing on optimal decisions and propose a coordination mechanism to encourage supply chain members to share information.

Design/methodology/approach

The two-echelon dual-channel FAP supply chain includes a manufacturer and a retailer. By using the Stackelberg game theory and the backward induction method, the optimal decisions are obtained under information symmetry and asymmetry and the coordination contract is designed.

Findings

The results show that supply chain members should comprehensively evaluate the specific situation of product attributes, coefficient of freshness-keeping cost and network operating costs to make decisions. Asymmetric information can exacerbate the deviation of optimal decisions among supply chain members and information sharing is always beneficial to manufacturers but not to retailers. The improved revenue-sharing and cost-sharing contract is an effective coordination mechanism.

Practical implications

The conclusions can provide theoretical guidance for supply chain managers to deal with information asymmetry and improve the competitiveness of the supply chain.

Originality/value

This paper combines the three characteristics that are most closely related to the reality of supply chains, including horizontal and vertical competition of different channels, the perishable characteristics of FAPs and the uncertainty generated by asymmetric demand information.

Details

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

Keywords

Article
Publication date: 6 November 2023

Chi-Jen Chen

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.

Details

Journal of Hospitality and Tourism Insights, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9792

Keywords

Article
Publication date: 18 March 2024

Wenqiang Li, Juan He and Yangyan Shi

Marketing is a hot topic, and the purpose of this study is to investigate how shareholding strategies can be applied to achieve strategic synergy between firms in vertical supply…

Abstract

Purpose

Marketing is a hot topic, and the purpose of this study is to investigate how shareholding strategies can be applied to achieve strategic synergy between firms in vertical supply chains to improve retailers’ marketing efforts from a long-term perspective.

Design/methodology/approach

This study constructs Stackelberg models to analyze the operating mechanisms of shareholding supply chains under forward, backward and cross-shareholding strategies. The authors analyze the effects of shareholding on prices, marketing efforts and profits, and explore the strategic preferences and outcomes of different supply chain members.

Findings

Forward/backward shareholding plays the same role as cross/nonshareholding in supply chains because the effect of the retailer’s shareholding is offset by the power status of the manufacturer, and the retailer can still profit when wholesale prices are higher than selling prices in certain cases. A manufacturer’s shareholding in a retailer can benefit consumers and improve marketing efforts by reducing retailers’ marketing costs, while a retailer’s shareholding in a manufacturer has no such effect. None of all shareholding strategies can coordinate the interests of all members; however, an effective rebate policy can resolve this problem.

Originality/value

The results reveal the operational mechanism of shareholding supply chains and provide reference values for managers who want to improve marketing efforts and economic performance using a shareholding strategy.

Details

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

Keywords

Article
Publication date: 29 April 2024

Nana Wan and Jianchang Fan

This paper forms an e-commerce supply chain that include a manufacturer providing products and an online platform providing service. The reselling platform mode and the agent…

Abstract

Purpose

This paper forms an e-commerce supply chain that include a manufacturer providing products and an online platform providing service. The reselling platform mode and the agent platform mode are considered through an exploration of the manufacturer Stackelberg (MS), vertical Nash (VN), platform Stackelberg (PS) power structures. The purpose of this paper is to explore the pricing and platform service decisions under different platform selling modes and channel power structures.

Design/methodology/approach

Based on the game theory models, this paper investigates the interaction between the manufacturer and the online platform under four different scenarios. The optimal solutions of four models are provided. Through comparison analyses, this paper evaluates the impacts of platform selling mode and channel power structure on the pricing and platform service decisions and the members’ profits.

Findings

The manufacturer prefers the MS power structure in any platform mode. The online platform prefers the PS (MS) power structure under a low (high) service cost efficiency in the reselling platform mode, while prefers the PS and VN power structures in the agent platform mode. Moreover, the manufacturer prefers the agent (reselling) platform mode under a low (high) service cost efficiency in any power structure. The online platform prefers the reselling platform mode in the MS and PS power structures, while prefers the reselling (agent) platform mode under a low (high) service cost efficiency in the VN power structures.

Originality/value

The analysis result provides important managerial implications that help the supply chain members develop a better understanding of the selection of the platform selling mode and the effect of the channel power structure in the presence of platform service.

Details

Industrial Management & Data Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 15 January 2024

Yonghong Cheng, Jiaxin Pan and Teng Yao

Motivated by the real-world practice of the thriving e-commerce, manufacturers are transcending traditional boundaries of merely producing and selling directly by implementing…

Abstract

Purpose

Motivated by the real-world practice of the thriving e-commerce, manufacturers are transcending traditional boundaries of merely producing and selling directly by implementing encroachment. Concurrently, supply chain (SC) members who overlook the corporate social responsibility (CSR) sharing will be left behind, which is closely linked to their profits. This paper aims to investigate a better way to share CSR under the scenarios of manufacturer encroachment and no-encroachment.

Design/methodology/approach

This paper constructs game-theoretic models in a SC consisting of a manufacturer (M) and a retailer (R), where the manufacturer can sell products by retailing, and may sell directly by implicating encroachment. The manufacturer and retailer jointly consider whether to share CSR and the proportion of it by taking consumer surplus into account. Furthermore, equilibriums for each model are derived using backward induction. Then, the authors analyse the impact of CSR sharing proportion and compare the equilibrium outcomes under different scenarios. Finally, the numerical analyses are presented to verify the results.

Findings

Several interesting results are found in this paper. First, the retailer shares more CSR can benefit SC members and social welfare when the manufacturer does not implement encroachment. However, the results may change which is decided by the unit cost of encroachment when the manufacturer does so. Second, the proportion of CSR shared by manufacturer and the unit cost of encroachment has an interactive impact on equilibrium outcomes. Finally, both manufacturer encroachment and SC members share CSR may be the best for the perspective of SC members and consumers.

Practical implications

Based on the analytical results, this paper provides novel managerial implications to assist manufacturer and retailer in determining the optimal strategies for CSR sharing and encroachment. Furthermore, the appropriate proportion of CSR shared by manufacturer and the unit cost of encroachment may let manufacturer, retailer and consumer surplus achieve a win-win-win situation.

Originality/value

To the best of the authors’ knowledge, this paper is the first attempt to explore the strategy of CSR sharing under the scenarios of manufacturer encroachment and no-encroachment.

Details

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

Keywords

Article
Publication date: 13 November 2023

Wen Zhang and Mingzhuo Dai

The purpose of this study is to explore the interplay between the selection of selling formats of remanufactured products for a third-party remanufacturer (TPR) and the quality…

Abstract

Purpose

The purpose of this study is to explore the interplay between the selection of selling formats of remanufactured products for a third-party remanufacturer (TPR) and the quality decision of an original equipment manufacturer (OEM).

Design/methodology/approach

This study considers a remanufacturing supply chain, where the OEM sells new products through a platform retailer, but the products remanufactured by the TPR can be sold via a direct or indirect channel. The authors model a Stackelberg game and explore the optimal quality decision of the OEM and selling format choice of the TPR.

Findings

The OEM's optimal decision depends mainly on consumers' discounted utility coefficient and cost-scale factor of remanufactured products. A higher consumers' valuation of the remanufactured product will not result in a higher retail price, but may lead to an increase in new product's sales. Given the cost-scale factor, the TPR prefers to sell directly no matter what the value of consumers' discounted utility coefficient is. An all-win situation is achieved with selling directly when consumers' discounted utility coefficient is sufficiently large.

Practical implications

These results provide some support to the operational strategies of the OEM and TPR.

Originality/value

This study firstly endogenizes the quality decision and combines the selling format selection of the TPR and the quality decision of the OEM to explore the interplay between these two important decisions.

Details

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

Keywords

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