Effects of fairness concerns on price and quality decisions in IT service supply chain

Ren, Tinghai; Wang, Dafei; Zeng, Nengmin; Yuan, Kaifu

doi:10.1016/j.cie.2022.108071

Cited by 16 publications

(5 citation statements)

References 49 publications

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“…In SOSC, no physical products are offered. For instance, Ren et al (2022) studied the quality and pricing issues in IT service supply chains. And Farsi et al (2020) explored supply chains that offer customized services such as customer maintenance and facility management.…”

Section: Service Supply Chainsmentioning

confidence: 99%

Will the embedded service in supply chains play a role in lowering manufacturer’s carbon emission and maintaining economic growth?

Shi

Chen

Yu³

et al. 2023

Front. Environ. Sci.

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Introduction: The carbon cap and trade mechanism (CCTM) is forcing companies to reduce carbon emissions. Due to financial and technical constraints, manufacturers responsible for recycling and remanufacturing begin to seek embedded services from energy service companies (ESCOs), marking the emergence of embedded low-carbon service supply chains. The purpose of this paper is to explore the role of embedded low-carbon service in supply chains in lowering manufacturer’s carbon emissions and maintaining economic growth.Methods: In this paper, a decision model for risk-averse closed-loop supply chain for embedded low-carbon service in uncertain markets is built by using the Stackelberg theory and mean-variance (MV) approach. Equilibrium decisions, the manufacturer’s expected utility growth, and total carbon emission reduction are obtained. Sensitivity analysis is performed for the main parameters.Results: The results indicate that only when the manufacturer’s risk aversion level and consumers’ low-carbon preference are within the range of 0.35–0.9, can the manufacturer bring in embedded low-carbon service by cooperating with an ESCO through revenue-sharing contracts. When there is a higher carbon price, embedded low-carbon service can further increase the manufacturer’s expected utility, maintain economic growth and reduce carbon emissions.Discussion: Embedded low-carbon service in supply chains can play a role in lowering manufacturers’ carbon emissions and maintaining economic growth when the manufacturer’s risk aversion level, carbon price, and consumers’ low-carbon preference are high. Theoretically, this study combines closed-loop supply chains (CLSCs) and embedded low-carbon services, enriching supply chain theories. In addition, the findings provide managerial insights for manufacturers, ESCOs, and governments.

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Section: Service Supply Chainsmentioning

confidence: 99%

Will the embedded service in supply chains play a role in lowering manufacturer’s carbon emission and maintaining economic growth?

Shi

Chen

Yu³

et al. 2023

Front. Environ. Sci.

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“…They studied the client firm's outsourcing strategy and the vendor firms' process improvement investments in the asymmetric cost setting. Ren et al (2022) took fairness concern into consideration when exploring the price and quality decisions of the IT supply chain which consists of a software developer, a service provider and client enterprises. Besides, they also considered a software service supply chain (SSSC) composed of a software developer, a service integrator and client firms, exploring the effect of channel encroachment on the equilibrium decisions and performance of software service supply chains (Ren et al, 2023).…”

Section: Software Supply Chain Managementmentioning

confidence: 99%

“…They studied the client firm's outsourcing strategy and the vendor firms' process improvement investments in the asymmetric cost setting. Ren et al . (2022) took fairness concern into consideration when exploring the price and quality decisions of the IT supply chain which consists of a software developer, a service provider and client enterprises.…”

Section: Literature Reviewmentioning

confidence: 99%

Analysis of software promotion strategies in product-service integrated supply chains

Li,

Xia,

Zhao

et al. 2023

IMDS

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PurposeThe purpose of this paper is to compare the pricing decisions and earning potential of the software supplier and the smart device manufacturer in different software promotion strategies.Design/methodology/approachBased on game theory, the authors formulate two promotion models, that is, the supplier implements software promotion activities individually (SP model) or outsources the promotion activity to the manufacturer under profit-sharing contract (MP model) when taking different channel power structures into consideration. Besides, in order to test the robustness of the conclusions, the authors also extend the basic model to the following situations: (1) the customers have different price elasticity toward service fee and product price; (2) the revenue sharing contract is employed by the supply chain members; and (3) the manufacturer's product promotion practice is taken into consideration.FindingsThe optimal service fee (product price) of the supplier (manufacturer) under SP model is always lower (higher) than that under MP model. Surprisingly, if the supplier is the channel leader and the profit sharing ratio exceeds certain threshold, the manufacturer's profit decreases in profit sharing ratio, which remains robust in three extension models. Moreover, the supply chain's profit in supplier-led game is always lower than that in Nash game irrespective of the promotion strategy in profit sharing context. When revenue sharing contract is adopted, the result holds only when the revenue sharing ratio is relatively low.Originality/valueThe authors originally explore two promotion strategies of the software supplier when taking the channel power structures into considerations, which has not been explored in the literature to the best of the authors' knowledge.

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“…On the other hand, particular emphasis is placed on the fact that the products we study are mainly general physical products; however, how to effectively transfer products to consumers also requires studying the quality of services that match these products, product services that include after-sales services, value-added services, extended warranty services, and other services (e.g., warranty services, experience services, etc.) [32]. Jamkhaneh et al (2022) [33] suggested that service quality is an important tool for service firms to improve their reputation and improving the quality of logistics services facilitates the improvidence of logistics service quality helps firms to minimize transaction costs when searching for company information and alternatives in competition.…”

Section: Research On Supply Chain Quality Issuesmentioning

confidence: 99%

A Quality Decision Model Considering the Delay Effects in a Dual-Channel Supply Chain

Zhan

Hui

Zhou³

et al. 2022

Sustainability

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Quality is not only the basis for business survival and development but also a key issue that cannot be ignored in supply chain management decisions. In practice, the impact of quality on goodwill does not show an immediate effect, and there is a dynamic delayed effect. Therefore, we developed a dynamic model that considers the delayed effect of quality on goodwill. Firstly, we constructed a delayed differential equation for the effect of quality on goodwill based on the Nerlove–Arrow model for a two-channel supply chain in a competitive environment and studied the dynamic quality decision problem of manufacturers and retailers under the delay effect. Secondly, we constructed the manufacturer and retailer Hamilton functions based on the principles of being of great value, solving and comparing the optimal product quality level, having an optimal service quality level, product goodwill, and overall profit of the supply chain under both decentralized and centralized decision modes, and investigated the effect of delay time on the profit and quality decisions of supply chain members. The conclusions show that: (i) delay time is an important reference for supply chain members when choosing the decision mode, and the overall profit size of the supply chain has different relationships with the different values of delay time taken into account with the two decision scenarios. (ii) Adopting a centralized decision mode can motivate manufacturers and retailers to improve the quality level, which in turn promotes the sales of products and the accumulation of brand goodwill.

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Effects of fairness concerns on price and quality decisions in IT service supply chain

Cited by 16 publications

References 49 publications

Will the embedded service in supply chains play a role in lowering manufacturer’s carbon emission and maintaining economic growth?

Will the embedded service in supply chains play a role in lowering manufacturer’s carbon emission and maintaining economic growth?

Analysis of software promotion strategies in product-service integrated supply chains

A Quality Decision Model Considering the Delay Effects in a Dual-Channel Supply Chain

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