Dynamic game analysis on pricing and service strategy in a retailer-led supply chain with risk attitudes and free-ride effect

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Junhai Ma ◽  
Yalan Hong
Keyword(s):  
Supply Chain ◽  
Positive Impact ◽  
Dynamic Game ◽  
Risk Preference ◽  
Retail Price ◽  
Level Of Service ◽  
Risk Attitudes ◽  
Service Strategy ◽  
Content Type ◽  
Free Ride

PurposeThe convenience of online shopping enables the manufacturer to develop direct channels. To counter manufacturer encroachment, the retailer tends to provide presale service to attract more customers. Meanwhile, the service provided by the retailer also has a positive impact on the manufacturer's sale volume, which is usually called the showrooming effect or free-ride. The purpose of this paper is to explore the dynamic game of pricing and service strategy in a dual-channel supply chain with risk attitudes and free-ride.Design/methodology/approachThis paper considers the risk attitude, characterized by mean-variance theory. First, the optimal pricing and service strategy of two static models under two scenarios are derived. Second, dynamic games are then considered to explore the evolution of the decisions. The classical optimization method is used to solve the problem, and numerical experiments are done to analyze the complex characteristic of the system.FindingsThe result shows that the retailer is willing to provide a higher level of service if his risk preference is higher. The offline retail price and online retail price are positively related to the retailer's risk preference. Besides, the free-ride behavior can reduce the offline retail price and the level of service provided by the retailer. Furthermore, the study indicates that the system is more likely to enter chaos if the retailer's risk preference is higher. Additionally, consumers' service sensitivity and cost coefficient affect the stability of the system.Originality/valueThe study provides a different perspective on supply chain management considering risk attitudes and free-ride The findings of the study can offer theoretical and practical guidance for enterprises to choose adjustment measures according to their risk preference.

Moving towards “Slow Food”, the new frontier of culinary innovation in India

2016 ◽  
Vol 8 (4) ◽  
pp. 444-460 ◽  
Author(s):  
Sandeep Munjal ◽  
Sanjay Sharma ◽  
Pallavi Menon
Keyword(s):  
Supply Chain ◽  
Value Chain ◽  
Positive Impact ◽  
Round Table Discussion ◽  
Bottom Line ◽  
Slow Food ◽  
Content Type ◽  
Hospitality Sector ◽  
Integrated Supply Chain ◽  
Backward Integration

Purpose The paper aims to research the current understanding of Slow Food in the Indian hospitality sector and to identify how the industry can embrace the concept and its sustainability. To begin, underpinnings are considered in relation to traditional, locally produced food for patrons that is actually “farm to fork” in terms of its delivery model as evidenced by backward integration in the supply of key ingredients. The economics of the backward integration is analysed to measure its impact on businesses’ bottom-line in the context of an inflationary economy. Design/methodology/approach Existing published literature is reviewed with reference to the “Slow Food movement” from both an international and Indian perspective. Vedatya’s approach to sustainable culinary value chain creation and its applicability for industry adoption with an intent to offer Slow Food on commercial menus is documented and discussed. A round table discussion with key food and beverage leaders is also documented and analysed to establish the current state of awareness and readiness of the sector to offer “Slow Food” through an integrated supply chain in India. Findings Slow Food as a concept is new to India; there is a huge shift in many parts of the world towards food that is fresh, traditional and drawn from locally available ingredients. This research shares Vedatya’s experience in developing an integrated value chain that can provide a sustainable Slow Food model for the Indian hospitality and restaurant sector to deploy with a positive impact on profitability too. Research limitations/implications There is need for more research to better understand the feasibility of hospitality businesses working on supply chain with backward integration, to offer “Slow Food” to consumers. While there seems to be a demand for traditional food, this paper does not research that aspect; further research is required to ascertain the potential demand for Slow Food in India. Practical implications The popularity of Slow Food is global; however, the Indian hospitality sector is yet to warm up to this potential. The customer focus on healthy, traditional, fresh food opens an opportunity to innovate, and businesses that build capacity to offer real farm-to-fork menus can become market leaders and will reap bottom-line benefits through lower input costs because of supply chain integration. Originality/value This paper is unique in terms of offering a discussion on the potential of Slow Food as the next realm of culinary innovation in India. It also adds value by sharing the Vedatya experience in terms of developing an integrated supply chain that facilitates the Slow Food offering in a farm-to-fork format. The model can be emulated by commercial hospitality businesses resulting in cost advantages and higher satisfaction levels of customers.

scholarly journals Research on the Dynamics Game Model in a Green Supply Chain: Government Subsidy Strategies under the Retailer’s Selling Effort Level

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-15 ◽  
Author(s):  
Xigang Yuan ◽  
Xiaoqing Zhang ◽  
Dalin Zhang
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Dynamic Game ◽  
Retail Price ◽  
Green Supply Chain ◽  
Government Subsidy ◽  
Principal Agent Theory ◽  
Effort Level ◽  
The Impact ◽  
Selling Effort

Based on dynamic game theory and the principal-agent theory, this paper examined different government subsidy strategies in green supply chain management. Assuming that the retailer’s level of selling effort involved asymmetric information, this study analyzed the impact of different government subsidy strategies on the wholesale price, the product greenness level, retail price, the level of selling effort, the manufacturer’s profit, and the retailer’s profit. The results showed that (1) the government’s subsidy strategy can effectively not only improve the product greenness level but also increase the profits of an enterprise in a green supply chain, which helps the retailer to enhance their selling effort; (2) regardless of whether the retailer’s level of selling effort was high or low, as the government’s subsidy coefficient increased, the wholesale price continued to decrease, and the product greenness level and retailer’s selling effort level also increased.

A two-period pricing model with hunger marketing strategy

2018 ◽  
Vol 13 (1) ◽  
pp. 81-100 ◽  
Author(s):  
Lili Yu ◽  
Juzhi Zhang
Keyword(s):  
Supply Chain ◽  
Marketing Strategy ◽  
Revenue Sharing ◽  
Retail Price ◽  
Discount Factor ◽  
Pricing Model ◽  
Equilibrium Solutions ◽  
Content Type ◽  
Decentralized System ◽  
Revenue Sharing Contract

Purpose This paper aims to investigate the effect of hunger marketing strategy on supply chain pricing and coordinate the supply chain through a two-period pricing model. Design/methodology/approach According to a two-period pricing model with hunger marketing strategy, the authors investigate two different scenarios: the centralized system and the decentralized system. The optimal or equilibrium solutions are calculated and compared in two different scenarios. Findings First, the hunger marketing strategy can improve the total profit of the supply chain by increasing the retail price and the total sales volume. Second, the hunger marketing strategy aggravates the double marginalization effect. Third, the authors introduce the revenue-sharing contract and characterize the conditions under which the revenue-sharing contract can coordinate the supply chain and be accepted by both the members. Research limitations/implications First, the authors suppose the same retail price in two periods for mathematic simplicity; second, they do not consider the discount factor for the revenue during the two periods. Practical implications This paper provides a guide to policymakers in terms of product pricing and supply rate. Originality/value First, the authors suppose the same retail price in two periods for mathematic simplicity; second, they do not consider the discount factor for the revenue during the two periods.

The effects of equity financing and debt financing on technological innovation

2019 ◽  
Vol 14 (4) ◽  
pp. 698-715 ◽  
Author(s):  
Ling Zhang ◽  
Sheng Zhang ◽  
Yingyuan Guo
Keyword(s):  
Technological Innovation ◽  
Design Methodology ◽  
Econometric Model ◽  
Positive Impact ◽  
Risk Preference ◽  
Developed Countries ◽  
Risk Tolerance ◽  
Debt Financing ◽  
Equity Financing ◽  
Content Type

Purpose The purpose of this paper is to compare the effects of equity financing and debt financing on technological innovation, and prove that the enhancement of a financing system’s risk tolerance for technological innovation can enhance the innovation risk preference of enterprises and thus promote innovation. Design/methodology/approach This study is based on a transnational sample of 35 developed countries from 1996 to 2015, by using the panel econometric model to empirically examine the effects of two financing modes on innovation. Findings The findings showed that equity financing, which has higher risk tolerance, has a more positive impact on innovation than debt financing in terms of both economic uptrend and economic downtrend, and that government efficiency plays a significant role in supporting the performance of technological innovation. Originality/value The paper provides a research framework for examining how a financing system’s risk tolerance capacity affects the development of technological innovation through promoting risk preference among enterprises. This paper provides transnational and cross-cycle comparative evidence that equity financing with a strong risk tolerance capacity can better support technological innovation, even in periods of economic downtrend. Moreover, the importance of financing system’s risk tolerance capacity for innovation during economic crises is discussed.

Risk management integration and supply chain performance in ISO 9001-certified and non-certified firms

2019 ◽  
Vol 69 (6) ◽  
pp. 1205-1225 ◽  
Author(s):  
Scott Dellana ◽  
John F. Kros ◽  
Mauro Falasca ◽  
William J. Rowe
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Positive Impact ◽  
Mediating Effect ◽  
Iso 9001 ◽  
Supply Chain Performance ◽  
Content Type ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to explore the mediating effect of supply chain risk management integration (RMI) on the relationship between supply chain logistics performance (LP) and supply chain cost performance (CP), as well as on the relationship between LP and supply chain service performance (SP). The impact of CP and SP on overall firm performance (FP) is also explored. ISO 9001-certified firms and non-certified firms are assessed to determine whether superior risk-based thinking, as required in the latest ISO 9001 standard, has a positive impact on the different relationships. Design/methodology/approach A theoretical model is developed and tested based on the participation of 140 supply chain managers. The proposed structural equation model positively relates LP, RMI, CP and SP. RMI is positively linked to CP and SP, while CP and SP are positively related to overall FP. Two subsamples (a group of 63 ISO 9001-certified firms and a group of 77 non-certified firms) are used to evaluate the model. Findings For certified and non-certified firms, LP is positively related to RMI, CP and SP, and SP and CP are positively related to FP. However, for certified firms, RMI partially mediates the relationship of LP with both CP and SP, while for non-certified firms, RMI does not mediate these relationships. The findings suggest that ISO 9001-certified firms are able to leverage RMI efforts to impact positively on supply chain performance, whereas non-certified firms are not. Research limitations/implications The study findings are based on the perceptions of managers. Even though the majority of the 63 certified firms included in this study were ISO 9001:2015 certified, the model results do not differentiate between companies certified to the 2008 version of the standard and the 2015 version (which specifically requires demonstration of risk-based thinking). Practical implications This study suggests that ISO 9001 provides a framework for risk management processes and collaboration with supply chain partners to positively impact the relationship of LP with cost and SP. Originality/value This is one of the first studies to characterize the benefits of using a structured approach for risk-based thinking that is associated with ISO 9001.

scholarly journals The role of geographical distance and its efficacy on global purchasing practices

2017 ◽  
Vol 37 (7) ◽  
pp. 865-881 ◽  
Author(s):  
Frank Wiengarten ◽  
Eamonn Ambrose
Keyword(s):  
Supply Chain ◽  
Large Scale ◽  
Positive Impact ◽  
Geographical Location ◽  
Operational Performance ◽  
Purchasing Management ◽  
Geographical Distance ◽  
Content Type ◽  
Cross Country ◽  
Industry Sectors

Purpose The purpose of this paper is to investigate the extent to which the geographical location of and thus the geographical distance between buyer and supplier impact on the efficacy of purchasing practices (i.e. strategic purchasing management, tactical purchasing management, relational purchasing management) in terms of operational performance. Design/methodology/approach The authors utilise cross-country data collected through the International Purchasing Survey group across a variety of countries and industry sectors. The authors conduct exploratory factor analysis to assess construct validity and regression analysis to test the varying effects of purchasing practices on operational performance. The authors split the sample to compare potential differences in the efficacy of purchasing practices between buyers and suppliers through geographical characteristics. Findings The results indicate that the efficacy of purchasing practices does indeed vary depending on differences in geographical location. Specifically, the authors identify that in cases where the buyer and supplier are located in the same country tactical and relational purchasing tools have a positive impact on operational performance. However, in cases where they are situated in different countries none of the purchasing tools seems to significantly improve operational performance. Originality/value Research that has taken a cross-country perspective on the efficacy of supply chain practices is surprisingly sparse. Since most supply chains are becoming more and more global it is important to consider the geographical location of the supply chain members when assessing the performance benefits of supply chain practices such as purchasing tools. Thus, the authors introduce and test the concept of geographical distance on the efficacy of purchasing practices at the dyadic level. To test the implications of geographical distance for purchasing practices the authors use a large-scale cross-country survey.

The partial mediating role of supply chain integration between Industry 4.0 and supply chain performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gizem Erboz ◽  
Işık Özge Yumurtacı Hüseyinoğlu ◽  
Zoltan Szegedi
Keyword(s):  
Supply Chain ◽  
Industry 4.0 ◽  
Positive Impact ◽  
Partial Least Square ◽  
Supply Chain Integration ◽  
Supply Chain Performance ◽  
Manufacturing Companies ◽  
Content Type ◽  
Mediating Role

Purpose Industry 4.0 not only impacts the manufacturing industry but also supply chain practices. Drawing on the resource-based view (RBV), the purpose of this paper is to examine how Industry 4.0 affects supply chain integration (SCI) and supply chain performance (SCP). Design/methodology/approach The data were collected from 212 respondents in manufacturing companies. The partial least square structural equation modelling (PLS-SEM) was used to test the hypotheses of this study. Findings The findings reveal that Industry 4.0 has a positive impact on SCI and SCP, and SCI has a positive impact on SCP. In addition, a partial mediating role of SCI has been found between Industry 4.0 and SCP. Practical implications This study reveals the role of Industry 4.0 on supply chain practices and draws attention to SCI in the linkage between Industry 4.0 and SCP. The findings emphasise the need for Industry 4.0 and SCI to enhance SCP. Originality/value There is limited research on the impacts of Industry 4.0 on SCI and SCP. This research finds empirical evidence for these impacts and enhances knowledge of Industry 4.0 by using a sample from an emerging country.

The pricing strategy of dual-channel supply chain with risk-averse agents and heterogeneous preference consumers

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rufeng Wang ◽  
Zhiyong Chang ◽  
Shuli Yan
Keyword(s):  
Supply Chain ◽  
Risk Control ◽  
Optimal Strategies ◽  
Risk Attitude ◽  
Risk Attitudes ◽  
Risk Averse ◽  
Content Type ◽  
Dual Channel ◽  
Heterogeneous Preference ◽  
Dual Channel Supply Chain

PurposeThe purpose of this paper is to investigate the pricing strategy and the impact of agents' risk preference in a dual-channel supply chain in which both agents are risk-averse.Design/methodology/approachThe authors make use of the mean-variance (MV) method to measure the risk aversion of the agents and apply Stackelberg game to obtain the optimal strategies of the proposed models. Furthermore, the authors compare the optimal strategies with that in the benchmark model in which no agent is risk-averse.FindingsThe authors find that the pricing decisions can be divided into four categories according to the risk attitudes of the agents: the decisions that are independent of two agents' risk attitudes, the decisions that depend on only one agent’s risk attitude (i.e. depend on only manufacturer's risk attitude and depend on only retailer's risk attitude) and the decisions that depend on both agents' risk attitudes. In addition, the authors find that the retail price will be lower and the wholesale price in most cases will be lower than that in the benchmark when at least one agent's risk control is effective; the demand will be always increasing as long as one agent's risk control is effective. Furthermore, compared to the benchmark, a win-win strategy (i.e. Pareto improvement) for the supply chain members can be obtained in a certain range where the agents' risk controls are appropriate.Originality/valueThis research provides a theoretical reference for the managers to make the pricing decisions and the risk control in dual-channel supply chains with heterogeneous preference consumers.

The effectiveness and outcomes of the Muslim-friendly medical tourism supply chain

2017 ◽  
Vol 8 (4) ◽  
pp. 732-752 ◽  
Author(s):  
Muhammad Khalilur Rahman ◽  
Suhaiza Zailani
Keyword(s):  
Supply Chain ◽  
Organizational Performance ◽  
Structural Equation ◽  
Medical Tourism ◽  
Positive Impact ◽  
Production Network ◽  
Content Type ◽  
Service Supply Chain ◽  
Tourism Service ◽  
Tourism Supply Chain

Purpose This paper is specifically developed on the basis of a pragmatic model for the Muslim-friendly medical tourism supply chain industry. The purpose of this study is to investigate the effectiveness and viability of the Muslim-friendly medical tourism supply chain practices in Malaysia. Design/methodology/approach A framework for the service supply chain management of the Muslim-friendly medical tourism with the effective outcomes was theoretically developed and explored in this study, using a structural equation modelling with the partial least squares technique. A structured questionnaire was developed, distributed and collected from 38 Islamic-friendly hospitals, 9 Muslim-friendly medical agencies and 44 Muslim-friendly hotels that will form the potential relevant associations of the medical tourism supply chain practices in Malaysia. Findings The findings provide reliable evidence that the effectiveness of the Muslim-friendly medical tourism supply-chain practice has a positive impact on the Muslim-friendly medical tourism supply chain. In addition, the Muslim-friendly medical tourism supply chain practice has also a significant and positive impact on the organizational performance as a whole. The result also demonstrates that collaboration is dependent on the demand management, whilst the productivity is not associated with it. Originality/value Practicing and implementing a Muslim-friendly medical tourism service supply chain is important, in the sense that the Muslim patients’ demand on the choice of halal practice of medical treatment and halal food consumption criteria. This investigation is the first to embark on the research on the Muslim medical tourism supply chain production network in Malaysia. This study provides practitioners with the important related data to improve their policies and their performances in the organization. The statistical results provide indispensable valuable information in comprehending the critical medical tourism supply chain practices and most specially to assist the Muslim-friendly medical tourism sector to offer quality medical tourism service that suits and attracts the Muslim medical tourists’ broad needs regionally and abroad.

The influence of dynamic capabilities on hospital-supplier collaboration and hospital supply chain performance

2017 ◽  
Vol 37 (5) ◽  
pp. 664-684 ◽  
Author(s):  
Santanu Mandal
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Positive Impact ◽  
Equation Modeling ◽  
Supply Chain Performance ◽  
Content Type ◽  
Technology Orientation ◽  
Supplier Collaboration

Purpose The purpose of this paper is to explore the influence of hospital’s visibility for sensing (VFS), learning, coordinating and integrating on hospital-supplier collaboration. Second, it explored the influence of hospital-supplier collaboration on hospital supply chain performance. The author also explored how the technology orientation of the medical chain units influences the above linkages. Design/methodology/approach The study adopted a multi-unit study of different hospital supply chains. Consequently, perceptual data were gathered from seven dominant entities in a typical medical/hospital supply chain: hospitals and clinics, accommodation (i.e. hotels), chemistry and pharmaceutical, marketing/public relations/promotion, medical equipment manufacturers, food and beverage and insurance. The responses were gathered using e-mail survey and were analyzed using structural equation modeling. Findings Based on 192 completed responses, the author found positive influences of VFS, learning and integrating on hospital-supplier collaboration and a positive impact of hospital-supplier collaboration on hospital supply chain performance. An insignificant influence of hospital’s visibility for coordinating was noted on hospital-supplier collaboration. The study argued hospitals to invest more for enriching their dynamic capabilities to diagnose the changes in the environment so as to sustain their collaborative relationships leading to positive performance implications. Originality/value The study is the foremost to investigate the effects of hospital’s dynamic capabilities on its collaborative efforts with its key supplier and their influence on hospital supply chain performance. Also the study is foremost in exploring the importance of technology orientation on hospital dynamic capabilities and hospital-supplier collaboration. An important contribution of the research is the conceptualization of supply chain visibility core components (visibility of sensing, visibility of learning, visibility of coordinating and visibility of integrating) in the context of hospital supply chains.

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