scholarly journals Effects of Parallel Importation and Power Structures on Price Competition in Duopolistic Supply Chains

2021 ◽  
Vol 2021 ◽  
pp. 1-21
Author(s):  
Luqing Rong ◽  
Maozeng Xu ◽  
Xiaofeng Chen ◽  
Zhiping Lu

Multinational manufacturers (MNMs) achieve significant gains from product quality and reputation in entering emerging markets while facing many operational risks, such as parallel importation (PI) and market power structures. This paper focuses on a duopolistic supply chain consisting of one MNM and one local manufacturer (LM) in an emerging market with low willingness-to-pay (WTP). Within the game analytical framework, we consider different market power structures and investigate the impact of PI on the manufacturers’ price competition, and we further discuss the MNM’s countermeasures in high and low WTP markets. We find that PI does not occur when the WTP ratio is below the threshold or the transaction cost is high. Power structures significantly affect the participant’s profitability, the LM’s gains are maximized if the MNM fully dominates the market, and the MNM loses the minimum if the LM exclusively rules the market. When in codominant structure, the parallel importer achieves maximum gains while the MNM’s profits rise in the market WTP ratio interval. PI activities boost the benefits for the LM and the parallel importer, whereas increasing transaction costs diminish those effects and promote the MNM’s profitability. PI promotes or deters price competition in duopolistic supply chains depending on power structures. In addition, increasing either the level of product substitution or quality perception restrains PI and improves the LM’s earnings, but the latter expands the MNM’s losses.

Author(s):  
Sergey Yevgenievich Barykin ◽  
Andrey Aleksandrovich Bochkarev ◽  
Olga Vladimirovna Kalinina ◽  
Vladimir Konstantinovich Yadykin

There is currently a discussion going on in the scientific community about using digital twins and modeling to manage risks in the supply chains. This need for constructing digital twins is caused by the low reliability and stability of supply chains due to the faults in their operation. These faults are a result of risks in the supply chains which can be consolidated into two types. The first type is operational risks. These are the current risks of the supply chain itself caused by an uncer-tainty of supply and demand as well as by an obstructed flow of information along the supply chain. The second type is critical risks caused by force majeure. These risks disrupt the normal operation of the supply chain and critically reduce the most important performance indicators of the company such as annual income and profits. Risks happen due to natural or man-made causes such as fires and floods in the distribution centers or at production facilities, legal disputes with sup-pliers, strikes, terrorist attacks on logistics facilities and others. Dynamic simulation and analytical optimization are two dominant technologies for managing risks of the supply chains, which helps to increase their reliability and stability if failures occur. Through optimizing and simulating of the supply chains, companies can generate new information about the impact of failure and influence the supply chain and its performance by looking at various scenarios that simulate the locations of failures, the duration and recovery policies. An analysis of the literary sources shows that there is no single approach to build the concept for a supply chain digital twin. This article gives an overview of the literature according to this problem and offers the author's point of view on the concept for a supply chain digital twin.


Author(s):  
А. Ignatyuk ◽  
М. Sobolieva ◽  
М. Saykevich

The article explores the influence of monopoly power, arising from the use of advertising in the pharmaceutical industry, on public welfare: from the standpoint of market equilibrium and the well-being of society (Becker-Murphy model); in terms of consumer equilibrium (Tremblay-Polaski model); from manufacturer’s equilibrium position (model NEIO). Based on these models, an attempt was made to answer the question of the negative or positive impact of non-price competition (for example, advertising) on public welfare.


2020 ◽  
Vol 31 (3) ◽  
pp. 665-696 ◽  
Author(s):  
Artur Swierczek

PurposeThe goal of the paper is twofold. First, it aims to empirically conceptualize whether a wide array of fragmented demand planning activities, performed in supply chains, can be logically categorized into actionable sets of practices, which then form a broader conceptualization of the demand planning process. Second, regarding certain contextual factors, our research seeks to investigate the contribution of demand planning, as a higher-order construct, to mitigating disruptions induced by operational risks in supply chains.Design/methodology/approachIn this study, PLS-SEM was used to estimate the reflective-formative nature of the model. The results of PLS-SEM were additionally complemented by the assessment of the predictive power of our model. Finally, to reveal possible contingency effects, the multigroup analysis (MGA) was conducted.FindingsThe study suggests that demand planning process (DPP) is a second-order construct that is composed of four sets of practices, including goal setting, data gathering, demand forecasting, communicating the demand predictions and synchronizing supply with demand. The study also reveals that the demand planning practices, only when considered together, as a higher-order factor, significantly contribute to mitigating disruptions driven by operational risks. Finally, the research shows that the strength of the impact of demand planning on disruptions is contextually dependent.Research limitations/implicationsWhile the study makes some important contributions, the obtained findings ought to be considered within the context of limitations. First, the study only investigates disruptions driven by operational risks, ignoring the negative consequences of environmental risks (terrorist attacks, natural disasters, etc.), which may have a far more negative impact on supply chains. Second, the sample is mostly composed of medium and large companies, not necessarily representative of demand planning performed by the entire spectrum of companies operating in the market.Practical implicationsThe study shows that to effectively mitigate disruptions induced by operational risks, the demand planning practices should be integrated into a higher-order construct. Likewise, our research demonstrates that the intensity of demand planning process is contingent upon a number of contextual factors, including firm size, demand variability and demand volume.Social implicationsThe study indicates that to mitigate disruptions of operational risk, demand planning as a higher-order dynamic capability can be referred to the concept of organizational learning, which contributes to forming a critical common ground, ensuring the balance between formal and informal dynamic routines.Originality/valueThe paper depicts that to fully deal with disruptions, the demand planning practices need to be integrated and categorized into the dedicated higher-order. This may lead to forming demand planning as a higher-order dynamic capability that provides a more rapid and efficient rebuttal to any disruptions triggered by operational risks.


Author(s):  
Yosra Makni Fourati ◽  
Rania Chakroun Ghorbel

This study aims to examine the consequences of International Financial Reporting Standards (IFRS) convergence in an emerging market. More specifically, we investigate whether the adoption of the new set of accounting standards in Malaysia is associated with lower earnings management. Using a sample of 3,340 firm-year observations across three reporting periods with different levels of IFRS adoption, we provide evidence that IFRS convergence improves earning quality. In particular, we find a significant decrease in the absolute value of discretionary acccruals in the partial IFRS-convergence period (2007-2011), whereas this effect is restrictive after the complete IFRS- implementation.


Logistics ◽  
2021 ◽  
Vol 5 (1) ◽  
pp. 12
Author(s):  
Lakshmy Subramanian

Health supply chains aim to improve access to healthcare, and this can be attained only when health commodities appropriate to the health needs of the global population are developed, manufactured, and made available when and where needed. The weak links in the health supply chains are hindering the access of essential healthcare resulting in inefficient use of scarce resources and loss of lives. A chain is only as strong as its weakest link, and demand forecasting is one of the weakest links of health supply chains. Also, many of the existing bottlenecks in supply chains and health systems impede the accurate forecasting of demand, and without the ability to forecast demand with certainty, the stakeholders cannot plan and make commitments for the future. Forecasts are an important feeder for budgeting and logistics planning. Under this backdrop, the study examines how improved forecasting can lead to better short-term and long-term access to health commodities and outlines market-related risks. It explores further how incentives are misaligned creating an uneven distribution of risks, leading to the inability to match demand and supply. For this purpose, a systematic literature review was performed, analyzing 71 articles from a descriptive and content approach. Findings indicate the emerging trends in global health and the consequences of inaccurate demand forecasting for health supply chains. The content analysis identifies key factors that can pose a varying degree of risks for the health supply chain stakeholders. The study highlights how the key factors emerge as enablers and blockers, depending on the impact on the overall health supply chains. The study also provides recommendations for actions for reducing these risks. Consequently, limitations of this work are presented, and opportunities are identified for future lines of research. Finally, the conclusion confirms that by adopting a combination of approaches, stakeholders can ensure better information sharing, identify avenues of diversifying risks, and understand the implications.


2021 ◽  
Vol 128 (1) ◽  
Author(s):  
Michael J. Negus ◽  
Matthew R. Moore ◽  
James M. Oliver ◽  
Radu Cimpeanu

AbstractThe high-speed impact of a droplet onto a flexible substrate is a highly non-linear process of practical importance, which poses formidable modelling challenges in the context of fluid–structure interaction. We present two approaches aimed at investigating the canonical system of a droplet impacting onto a rigid plate supported by a spring and a dashpot: matched asymptotic expansions and direct numerical simulation (DNS). In the former, we derive a generalisation of inviscid Wagner theory to approximate the flow behaviour during the early stages of the impact. In the latter, we perform detailed DNS designed to validate the analytical framework, as well as provide insight into later times beyond the reach of the proposed analytical model. Drawing from both methods, we observe the strong influence that the mass of the plate, resistance of the dashpot, and stiffness of the spring have on the motion of the solid, which undergo forced damped oscillations. Furthermore, we examine how the plate motion affects the dynamics of the droplet, predominantly through altering its internal hydrodynamic pressure distribution. We build on the interplay between these techniques, demonstrating that a hybrid approach leads to improved model and computational development, as well as result interpretation, across multiple length and time scales.


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