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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: 14 November 2023

Fan Ding, Zhangping Lu and Jingxian Chen

Contract Manufacturers (CM, factory) can cultivate factory brand products by imitating Original Equipment Manufacturers' (OEM, brand owner) National Brand products, and compete…

66

Abstract

Purpose

Contract Manufacturers (CM, factory) can cultivate factory brand products by imitating Original Equipment Manufacturers' (OEM, brand owner) National Brand products, and compete with OEM through the online retailer, that is, factory encroachment. In practice, few consumers can identify the quality of those two products in the online market. Implementing blockchain technology (BTI) can help all consumers identify product quality but may change the operation decisions and incur implementation costs. This study aims to explore how will the BTI strategies affect participants' operation performance under the factory encroachment and delve into the decisions regarding NB product quality and CM encroachment.

Design/methodology/approach

This study constructs a three-level outsourcing supply chain comprising one contract manufacturer (CM, factory), one original equipment manufacturer (OEM) and one online retailer. By utilizing the Stackelberg game, the authors first compared the results between two strategic decisions of BTI and no-BTI by online retailers under the factory encroachment scenario. Then, the NB product quality decision and the CM's encroachment decision are also investigated.

Findings

BTI strategy can benefit all participants (triple win), which both occurs in exogenous and endogenous quality cases, and the triple win area will expand (shrink) as the BTI cost decreases (increases). In addition, the OEM will improve product quality to confront competition from the CM, and the OEM may not always benefit from the BTI, it depends on the maturity of the market. Interestingly, BTI could improve the consumer surplus when the proportion of novice consumers is low. Finally, this study also investigates the extended case that CM always encroaches into the market whether the online retailer choose BTI or not, which hurts OEM's profit and decreases the product quality.

Originality/value

This study sheds light on the strategic decisions of online retailers' BTI regarding supply chain members' profits, consumer surplus and social welfare under factory encroachment. It also demonstrates that the BTI strategy, under different quality decisions (endogenous and exogenous), can be more profitable for chain members and consumers.

Details

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

Keywords

Article
Publication date: 23 October 2023

Yating Li, Ting Chen, Xinxin Zhang and Jiahang Yuan

Eco-innovation products, which means achieving more efficient and responsible use of resources and reducing the detrimental impact on the environment, can win a competitive…

Abstract

Purpose

Eco-innovation products, which means achieving more efficient and responsible use of resources and reducing the detrimental impact on the environment, can win a competitive advantage for the enterprises. But it is not easy to implement due to the high cost of eco-innovative technologies development, the uncertainty of market needs and return risk of investment. Many enterprises seek collaborations from their upstream suppliers to jointly carry out eco-innovation, such as Apple, IBM and Nike. A unique feature of collaboration is that efforts by one party enhance the marginal value of the other party's efforts. However, the collaboration will make the partner know the eco-innovation technology and prompt the partner to encroach the market to sell competitive products by herself. Motivated by this observation, this paper considers the optimal collaboration strategy on eco-innovation between upstream and downstream supply chain member and the optimal encroachment strategy of upstream supplier in a supply chain.

Design/methodology/approach

This paper models a supply chain wherein a supplier provides products or materials for her manufacturer and cooperates with her manufacturer in eco-innovation. Also, the supplier could encroach on the market to sell similar products by herself. Then this paper uses game theory and mathematical modeling to do relative analysis.

Findings

The analysis reveals several interesting insights. First, eco-innovation collaboration makes supplier encroachment no longer only rely on the encroachment cost. The delayed realized eco-innovation efficiency information also plays a vital role. Second, different from previous research, the authors find the manufacturer's preference for supplier encroachment depends on the uncertainty of eco-innovation efficiency and potential market demand. Third, both partial and full encroachment strategies of the supplier can effectively improve the eco-innovation level.

Originality/value

The paper is the first to take the interplay between collaboration and encroachment into account in a supply chain. The results caution enterprises and policymakers to take vertical collaboration and delayed realized information into account in the competitive supply chain before making any operational decisions. Furthermore, the authors propose that governmental intervention aimed at stimulating supplier encroachment in appropriate circumstances can contribute to the improved environmental performance of products.

Details

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

Keywords

Article
Publication date: 13 December 2022

Lixi Zhou, Tijun Fan, Lihao Zhang and Luyu Chang

With the development of e-commerce and mobile payment, platform sales become unstoppable, and many manufacturers also encroach on online market by establishing direct selling…

Abstract

Purpose

With the development of e-commerce and mobile payment, platform sales become unstoppable, and many manufacturers also encroach on online market by establishing direct selling channels. Channel conflict intensifies in online market and quality differentiation and is widely used in business practice as an effective way to alleviate such a competition. The authors study a retail platform's sales strategy and interactions with an upstream manufacturer's encroachment strategy in this paper. Unlike most online marketplace and encroachment research, product quality selection is also engaged in the present research to capture the motivation above.

Design/methodology/approach

The authors analyze a game-theoretical model that the platform as the first/second mover participates in strategic decision-making, and then jointly decides the product quality level with manufacturer.

Findings

The authors find that encroachment always profits the manufacturer and almost hurts the platform. Interestingly, the first-mover advantage can help the platform guide the manufacturer encroachment and promote a “win–win” situation when product quality level is relatively slight or obvious. Nevertheless, the second-mover advantage can help the platform alleviate the profit loss caused by encroachment when product quality level is moderate. Furthermore, suffered from encroachment loss, the platform can make a credible threat by sales termination to restrain manufacturer encroachment.

Originality/value

This paper innovatively explores the strategic interaction between manufacturer encroachment and quality differentiation in a platform supply chain, and further analyzes the first-mover advantage in this interaction, which fills the gaps of previous platform research and has great significances to enterprise production and operational decision in business practice.

Details

Industrial Management & Data Systems, vol. 123 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 11 June 2019

Andre Nijhof, Marjolein Bakker and Henk Kievit

This paper aims to elucidate what concepts of encroachment in business-to-consumer markets explain the market share increase of companies with sustainability value propositions…

1331

Abstract

Purpose

This paper aims to elucidate what concepts of encroachment in business-to-consumer markets explain the market share increase of companies with sustainability value propositions. It documents the encroachment field, analyses the practice of ten companies and proposes and defines the additional concept of transparency encroachment.

Design/methodology/approach

Semi-structured interviews were conducted with representatives of companies with an increase in customers and market share due to their sustainability value proposition. These were supplemented with secondary data, like documented interviews, sustainability reports and reports on market development. The interview transcripts and secondary data notes were coded using template analysis.

Findings

As the literature on encroachment assumes that new value propositions take away market share from incumbents due to advantages for customers, it is questionable whether it can explain how value propositions with advantages for society as a whole can encroach markets. The results of this study show that the dominant forms of encroachment in the current literature – high-end encroachment, low-end encroachment and business model encroachment – can only partly explain encroachment through sustainability value propositions. An additional encroachment form is identified: transparency encroachment.

Research limitations/implications

This research adds greater clarity to what companies do when they encroach markets with sustainability value propositions. Furthermore, the pattern of transparency encroachment is discussed to define the common aspects of this concept and to argue why these aspects are needed for encroachment. It implies that marketing activities should start from the perception that customers are allies – and not kings – in the development toward higher levels of sustainability.

Practical implications

The paper offers practical implications insofar as it deconstructs three aspects of transparency encroachment that are enacted by companies. Customer awareness, unique experience and customer contribution are all needed to enact transparency encroachment. It is argued that other companies introducing sustainability value propositions to encroach markets should find their own application of these three aspects to create the potential for successful encroachment.

Social implications

Because of the focus on sustainability aspects of value propositions, this study generates knowledge about the marketing and encroachment of products with a relatively positive impact on society. Adoption of the identified concept of transparency encroachment contributes to sustainable development.

Originality/value

To date, there has been very little marketing research that explores the role of sustainability value propositions in the encroachment of markets. Nonetheless, nowadays customers seem to look beyond their own benefits and are increasingly demanding a new approach that builds upon the sustainability aspects of products. This research adds greater clarity to encroachment through sustainability value propositions.

Details

European Journal of Marketing, vol. 53 no. 10
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 10 March 2021

Lara Hamdan and Seung Hwan (Mark) Lee

As social media platforms continue to have an increased presence in influencer marketing, researchers and practitioners are seeking ways to optimize the use of these platforms…

1479

Abstract

Purpose

As social media platforms continue to have an increased presence in influencer marketing, researchers and practitioners are seeking ways to optimize the use of these platforms. The purpose of this study is to investigate the effect of brand encroachment, a level of brand's control over the promotion executed by social media influencers (SMIs), on the importance of interactivity of SMIs.

Design/methodology/approach

This study examined the effect of brand encroachment on interactivity whilst examining the mediating effects of both passion and personal power. The study was an online, one-factor between-subjects design comparing high level of brand encroachment vs low level of brand encroachment.

Findings

The results of the experimental study suggest that as brand encroachment decreases, there is an increasing importance of being interactive. In addition, with lower brand encroachment, SMIs portray more personal power and passion toward the product or service being promoted.

Originality/value

As influencers create communities via increased levels of engagement, authenticity and relatability, it is of paramount importance that SMIs build relationships through interactivity in low-brand encroachment settings. Brands should offer more opportunities for SMIs to be interactive with their audience, while intrinsically building their personal power and passion as sources for these interactions.

Details

International Journal of Retail & Distribution Management, vol. 50 no. 3
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 4 January 2022

Tian Wang, Yangyang Liang and Zhong Zheng

The purpose of this paper is to investigate manufacturer encroachment and distributor encroachment in a three-echelon supply chain consisting of an upside manufacturer, an…

Abstract

Purpose

The purpose of this paper is to investigate manufacturer encroachment and distributor encroachment in a three-echelon supply chain consisting of an upside manufacturer, an intermediate distributor and a downside retailer.

Design/methodology/approach

In this paper, the authors use the optimization theory to mathematize the proposed question and build a model. First, the authors consider sequential quantity decisions, where the encroacher decides on the direct selling quantity after determining the retailer's order quantity. Second, the authors relax this sequential decision process assumption by reconsidering a circumstance in which quantity decisions are decided simultaneously.

Findings

In contrast to previous studies, this study shows that in three-echelon supply chains, the upside firm is more likely to encroach compared with the downside firm. The “bright side” of encroachment exists for all players only when the encroachment cost is at a moderate level. However, in manufacturer encroachment under simultaneous quantity decisions, the “bright side” skips the distributor but benefits the retailer directly as the encroachment cost increases from zero to a certain level. The main reason lies in that the distributor loses its pricing power because the end-market has been disturbed by the simultaneous quantity decisions. A comparison of the results of sequential and simultaneous quantity decisions reveals the merit of simultaneous quantity decisions. The authors find that the intermediate role (the distributor in our model) in three-echelon supply chains may benefit more from simultaneous quantity decisions. That is, the distributor may achieve a better profit even in a market with intensified competition.

Originality/value

The findings of this paper contribute to the marketing science literature on encroachment. The majority of existing literature has focused on manufacturer encroachment in two-echelon supply chains. This paper innovatively investigates and compares manufacturer encroachment and distributor encroachment in a three-echelon supply chain.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 34 no. 10
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 27 March 2023

Jiaquan Yang, Jinyu Fang and Jiafu Su

This paper aims to identify the conditions under which encroachment is a viable strategy for a manufacturer to gain competitive advantage and achieve higher profitability in the…

Abstract

Purpose

This paper aims to identify the conditions under which encroachment is a viable strategy for a manufacturer to gain competitive advantage and achieve higher profitability in the presence of the store-brand.

Design/methodology/approach

This paper proposes game-theoretic models in a two-echelon supply chain consisting of a manufacturer (him) and a retailer (her), in which he distributes his national brand through the retailer, and endogenously determines whether to establish a new direct sales channel to sell the national brand when the retailer introduces her store-brand.

Findings

Analytical results show that the bar for the manufacturer to encroach the end market in the presence of the store-brand is always higher than that for him to encroach in the absence of the store-brand. Although incurring channel competition, encroaching with the national brand in the presence of the retailer's store-brand can lead to either a win-lose or win-win result for the manufacturer and the retailer. Numerical studies claim that, higher brand substitution can push down the retailer's enthusiasm to introduce her new brand. Counterintuitively, when the retailer introduces her store-brand, higher brand substitution does not necessarily push up the manufacturer's enthusiasm to respond with national-brand encroachment. When consumer preferences for the two brands are heterogeneous, a higher consumer preference for the retailer's store-brand results in the retailer's higher enthusiasm to introduce her store-brand and the manufacturer's lower enthusiasm to encroach with his national brand.

Originality/value

This study can help researchers to better understand the retailer's store-brand introduction, manufacturer encroachment and their interaction theoretically, and further provide decision support for enterprises to choose brand and channel strategies in practice.

Details

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

Keywords

Article
Publication date: 6 August 2019

Robert Mark Silverman, Henry Louis Taylor Jr, Li Yin, Camden Miller and Pascal Buggs

The purpose of this paper is to examine perceptions of institutional encroachment and community responses to it. Specifically, it focuses on residents’ perceived effects of…

Abstract

Purpose

The purpose of this paper is to examine perceptions of institutional encroachment and community responses to it. Specifically, it focuses on residents’ perceived effects of hospital and university expansion and the role of place making on gentrification in core city neighborhoods. This study offers insights into the processes driving neighborhood displacement and the prospects for grassroots efforts to curb it.

Design/methodology/approach

Data were collected through focus groups with residents and other stakeholders in working class, minority neighborhoods which were identified as being in the early stages of gentrification. Nine focus groups were held across three neighborhoods experiencing institutional encroachment. The analysis was guided by standpoint theory, which focuses on amplifying the voices of groups traditionally disenfranchized from urban planning and policy processes.

Findings

The findings suggest that residents perceived institutional encroachment as relatively unabated and unresponsive to grassroots concerns. This led to heightened concerns about residential displacement and concomitant changes in the neighborhoods’ built and social environments. Experiences with encroachment also increased residents’ calls for greater grassroots control of development.

Originality/value

This analysis illuminates how gentrification and displacement results from both physical redevelopment activities of anchor institutions and their decisions related to place making. The conclusions highlight the importance of empowering disenfranchized groups in the place-making process to minimize negative externalities at the neighborhood level.

Details

Journal of Place Management and Development, vol. 12 no. 4
Type: Research Article
ISSN: 1753-8335

Keywords

Article
Publication date: 11 April 2016

Una Woods

This paper aims to examine the remedies currently available in Ireland to resolve boundary disputes to assess the importance of the role played by adverse possession in this…

Abstract

Purpose

This paper aims to examine the remedies currently available in Ireland to resolve boundary disputes to assess the importance of the role played by adverse possession in this context. It also examines the potential impact of certain reforms in this area of law.

Design/methodology/approach

The research methodology is primarily doctrinal, although a comparative approach is adopted for the purposes of assessing whether certain lessons can be learned from recent reforms to the English law on adverse possession and the Australian approach to resolving boundary disputes, which relies heavily on mistaken improver and building encroachment legislation.

Findings

This paper demonstrates how the current law leaves certain mistaken improvers or encroachers on neighbouring land without a remedy, as they cannot rely on the doctrine of proprietary estoppel or adverse possession. If Ireland decides to replicate the English good faith requirement in relation to adverse possession of boundary land, the remedial vacuum facing these mistaken improvers or encroaching builders will become more pronounced. It is submitted that any such reform should be supplemented by the introduction of legislation akin to that operating in Australia which would facilitate the consideration of a broad range of factors and provide for flexible remedies to resolve such difficulties. It is also submitted that the legislation imposing such a good faith requirement should be carefully drafted to avoid the potential interpretative difficulties associated with the English reforms.

Originality/value

Boundary disputes are an unfortunate fact of life. The prevalence of boundary disputes and high costs associated with boundary litigation makes this review and critique of the current law and potential reforms highly relevant.

Details

International Journal of Law in the Built Environment, vol. 8 no. 1
Type: Research Article
ISSN: 1756-1450

Keywords

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