An analysis of technology licensing and parallel importation under different market structures

Li, Hai; Qing, Qiankai; Wang, Juan; Hong, Xianpei

doi:10.1016/j.ejor.2020.07.008

Cited by 29 publications

(14 citation statements)

References 64 publications

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“…, 2009; Watson et al. , 2015; Zhao and Long, 2008) and also for the gray market (Li et al. , 2021; Lu et al.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

“…We developed our study in a context of FMCG that has not been dealt with in the academic literature on the gray market in favor of other sectors such as technology (Bergen et al. , 1998; Gudigantala and Bicen, 2019; Li et al. , 2021), automobile (Yeung and Mok, 2012), luxury brands (Berman, 2008; Zhang and Feng, 2017; Zhao et al.…”

Section: Introductionmentioning

confidence: 99%

“…The literature has insisted on analyzing the gray market from the perspective of the manufacturer or brand owners as the main subjects affected (Antia et al, 2006;Bergen et al, 1998; IJPDLM 53,7/8 Berman, 2008;Li et al, 2021;Lu et al, 2020;Shao et al, 2016;Yeung and Mok, 2012). However, the incidence of the gray market has a direct impact on the business of official wholesale distributors due to the effect it has on their performance and the loss of sales to distributors that participate in the gray market.…”

mentioning

confidence: 99%

See 2 more Smart Citations

Using PLS-SEM for assessing negative impact and cooperation as antecedents of gray market in FMCG supply chains: an analysis on Spanish wholesale distributors

Arias

Jaén²

2022

IJPDLM

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PurposeWithin the fast-moving consumer goods (FMCG) supply chain, one of the problems facing the distribution channel strategy is the presence of the gray market. The article shows two novel antecedents of the participation of official distributors in this gray channel: Negative impact on distributor performance and the relationship with their supplier. Knowledge of this background helps to preserve the strategy outlined for the official distribution channel.Design/methodology/approachData were collected from 172 Spanish wholesale distributors and analyzed using PLS-SEM.FindingsThe authors found that the damage through negative affectation in the official distributor's performance and the cooperation provided by the manufacturer, have different effects. While affectation is shown to be a powerful antecedent of participation in the gray market, the effect of perceived manufacturer cooperation does not show strong results.Practical implicationsIn business practice, these findings lead the manufacturer to keep transactions carried out in the gray market at low levels and provide cooperation to official distributors to guarantee the official channel strategy aimed at efficiency in the distribution of branded goods.Originality/valueThe background of the gray market discussed in the study has not been previously analyzed in the literature. In this way, the authors contribute to the knowledge of such a common problem as the presence of the gray market in the segmentation of distribution channels of high-demand products.

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“…, 2009; Watson et al. , 2015; Zhao and Long, 2008) and also for the gray market (Li et al. , 2021; Lu et al.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

See 1 more Smart Citation

Using PLS-SEM for assessing negative impact and cooperation as antecedents of gray market in FMCG supply chains: an analysis on Spanish wholesale distributors

Arias

Jaén²

2022

IJPDLM

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“…Economides (1996) analyzes the incentive of an incumbent to share its technology with competitors in a market with network externalities. Li et al (2021) find that when parallel importation occurs, the manufacturer may have the motivation to license the technology and reduce the unit licensing fee. Zhou and Yuen (2021) investigate that the optimal remanufacturing mode (i.e., authorization and outsourcing) should be taken by an original equipment manufacturer.…”

Section: Literature Reviewmentioning

confidence: 99%

Innovation information sharing between two competitive supply chains

Xiao-min

Huang

et al. 2021

Int Trans Operational Res

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We study the innovation information sharing problem between two competing supply chains with one supplier and one manufacturer each. The manufacturer in each chain has private information about its product innovation degree and may choose to share such information with the competitor (horizontal information sharing), its supplier (vertical information sharing), or both (full transparency). We find that irrespective of the status of horizontal information sharing, vertical sharing always hurts the manufacturer, and sharing information horizontally is a dominating strategy for each manufacturer when the competition intensity is small. Furthermore, when competition intensity is not extremely large, full transparency can be realized through some transfer from the suppliers to the manufacturers, achieving a Pareto improvement for all parties, because the vertical and horizontal sharing are complementary to increase the supplier's benefit. Otherwise, neither horizontal nor vertical information sharing will occur.

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“…It can also combine information sharing and technology licensing to conduct research on closed-loop supply chains [22][23][24]. Li et al [25] studied the "gray market" by game model and combined with the technology licensing. Sim and Hong [26] analyzed the welfare implications of abatement technology licensing under taxation and emission trading schemes.…”

Section: Introductionmentioning

confidence: 99%

Remanufacturing Mode Selection regarding Technology Development

Wang

2021

Discrete Dynamics in Nature and Society

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We consider a Cournot game model between an OEM (original equipment manufacturer) and an IR (independent remanufacturer). The OEM manufactures new products and decides the quality level. IR remanufactures and obtains OEM’s technology through technology licensing or joint R&D. To prevent the cannibalization of new products by remanufactured products, the OEM may be reluctant to disclose latest technology to the IR. When the IR chooses the technology licensing mechanism, it will be in a rather disadvantaged position in the competition. In contrast, joint R&D can avoid this dilemma. The two mechanisms are comparatively analyzed under static equilibrium and complex dynamics from three aspects: (1) the output of new and remanufactured products, (2) the profits of the OEM and the IR, and (3) TEI (total environmental impact) under technology licensing mechanism and joint R&D mechanism, respectively. Based on the theoretical and numerical analysis, we derive that the joint R&D mechanism can achieve a Pareto improvement over the royalty mechanism under certain conditions. The stability, bifurcation, chaos, and largest Lyapunov exponent are analyzed in the dynamic model. Numerical examples show that chaos may cause the OEM and the IR to lose profits or even be in deficit. But from the perspective of TEI, chaos can be beneficial. Interestingly, some conclusions in the static setting are reversed in the chaotic state. We propose a feedback adjustment method to eliminate chaos.

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An analysis of technology licensing and parallel importation under different market structures

Cited by 29 publications

References 64 publications

Using PLS-SEM for assessing negative impact and cooperation as antecedents of gray market in FMCG supply chains: an analysis on Spanish wholesale distributors

Using PLS-SEM for assessing negative impact and cooperation as antecedents of gray market in FMCG supply chains: an analysis on Spanish wholesale distributors

Innovation information sharing between two competitive supply chains

Remanufacturing Mode Selection regarding Technology Development

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