Manufacturer’s financing strategy in a dual-channel supply chain: Third-party platform, bank, and retailer credit financing

Zhen, Xueping; Shi, Dan; Li, Yongjian; Zhang, Chu

doi:10.1016/j.tre.2019.101820

Cited by 115 publications

(60 citation statements)

References 51 publications

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“…Singh et al ( 2018 ) show that third party logistics for cold chain management need to consider various criterion of the outsourcing firm. Zhen et al ( 2020 ) find that a captical constricted manufacturer which sells products through a retailer and a third-party platform prefers the third-party platform credit financing to bank credit financing. Different from these studies, we focus on 3PPs which are the intermediary between retailers and consumers.…”

Section: Literature Reviewmentioning

confidence: 99%

Mobile payment, third-party payment platform entry and information sharing in supply chains

et al. 2020

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With the development of information technology, increasing retailers cooperate with third-party payment platforms (3PPs) to provide mobile payment service for consumers. The entry of 3PPs into supply chains, not only changes the cash flow, but also decreases consumer price sensitivity and stimulates demand by facilitating credit consumptions. Moreover, information sharing becomes more feasible with the help of 3PPs. To study the impacts of 3PP entry, we build game-theoretic models in a supply chain consisting of a manufacturer, a retailer and a 3PP, and derive the equilibrium in both the non-information sharing and information sharing cases. We show that the 3PP should make a reasonable commission rate which can lure the retailer to introduce the 3PP as well as maintain the 3PP’s profitability. The 3PP entry allows the retailer to set a higher price without decreasing the demand. However, to seize all of the benefit of the 3PP entry, the first mover manufacturer increases the wholesale price to a large extent. As a result, the 3PP entry causes a win-lose situation for the manufacturer and the retailer. The supply chain can be better off from the 3PP entry if it can significantly decrease consumer price sensitivity or its fixed investment cost is low. Furthermore, we find that information sharing benefits the manufacturer and the 3PP but harms the retailer. While information sharing always decreases the expected profit for the supply chain without the 3PP, it may increase that for the supply chain with the 3PP. To improve the supply chain profitability, we suggest to provide incentives for retailer information sharing if the 3PP can significantly decrease consumer price sensitivity (i.e., the proportion of the 3PP users is higher, the grace period of credit consumption is lower, or the cash opportunity cost is lower).

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Section: Literature Reviewmentioning

confidence: 99%

Mobile payment, third-party payment platform entry and information sharing in supply chains

et al. 2020

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“…Extensive studies have focused on financing strategies in operational management in terms of external and internal financing modes [42]. The former mode means the capital-constrained channel members get loans from financing institutions outside supply chains, and the external financing institutions include banks [15,29], e-commerce platforms [32], and third-party logistics companies [40], etc. Different from the former mode, the latter one refers to that the capital-constrained firms obtain trade credit from channel members in supply chains by early or delayed payment [8,24].…”

Section: 2mentioning

confidence: 99%

Optimal financing strategy in a closed-loop supply chain for construction machinery remanufacturing with emissions abatement

Fu¹,

Chen²,

Ding³

et al. 2023

JIMO

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<p style='text-indent:20px;'>Motivated by the remanufacturing practice of construction machinery, this paper examines the impacts of different cooperation financing and carbon emission reduction (CER) strategies on the operational decisions in a closed-loop supply chain (CLSC) where the original equipment manufacturer (OEM) produces only new products and the capital-constraint retailer produces remanufactured products and sells both new and remanufactured products to consumers. Based on the cooperation level between the OEM and the retailer, four different financing strategies, including the non-cooperation financing (NCF), the supply chain carbon financing (SCCF), the partial cooperation with delay-in-payment financing (PCD), and the full-cooperation financing (FC), are explored. Meanwhile, we extend the proposed models by considering the CER strategy implemented by the OEM, and then investigate its impact on the optimal operational and financing decisions of the retailer. The results show that: i) Under different financing strategies, the CER strategy has no impact on the retail price of remanufactured products, but can help increase the market share of new products and strengthen the market value effect for the OEM. ii) Compared with the scenario without CER, the SCCF strategy can not only ease funding pressure than the NCF strategy for the retailer but also increase the CLSC profit under the CER strategy. iii) No matter which financing strategy is adopted, the CER strategy always has a squeezing effect on the market size of remanufactured products, i.e., the cannibalization effect. iv) The CER strategy is not conducive to the development of the remanufacturing industry, but can improve the environmental performance in terms of reducing emissions and increasing the market sales for new products.</p>

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“…Helping SMEs solve the difficulty of financing, especially to a certain extent, Internet finance solves the problems of insufficient collateral and high financing costs in the financing process of SMEs. Zhen et al (2020) researched on the capital constraint problem faced by a manufacturer and showed that for the manufacturer, pursuing a financing strategy by borrowing from the third-party platform is always a better option than the bank. From the perspective of transaction cost theory, Li (2015) analysed the difficulty of financing of SMEs and pointed out the important role of the rapid development of Internet finance in solving the financing dilemma of SMEs.…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

P2P supply chain financing, R&D investment and companies' innovation efficiency

Pan

Guo

Chu

2021

JEIM

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PurposeThe purpose of this paper is to explore the impact of peer-to-peer (P2P) supply chain financing on companies' innovation efficiency.Design/methodology/approachThis study takes the core companies that invest in the P2P platform as the research background and uses data for Chinese companies and the systematic Generalised Method of Moments (the systematic GMM) to explore the relationship between the improvement of supply chain efficiency, research and development (R&D) investment, and innovation efficiency.FindingsThis study indicates that core enterprise investment in P2P can cause a significant improvement in the efficiency of the supply chain and that this improvement can significantly motivate enterprises to increase R&D investment. Although the improvement of supply chain efficiency has no significant effect on improving companies' innovation efficiency, it can have a positive impact on innovation efficiency through the regulating role of R&D investment.Research limitations/implicationsThis research shows several limitations such as single industry and few companies involved, but it analyses the impact of P2P supply chain financing on R&D investment, and companies' innovation efficiency and broadens the research field of P2P supply chain financing.Practical implicationsThis article provides a theoretical direction for listed companies to invest in P2P platforms and achieve supply chain management. The research on the regulating role of this article provides a new way of thinking for the study of enterprise innovation.Originality/valueThis paper analyses the impact of the core enterprise investment in P2P on R&D investment and its subsequent impact on the companies' innovation efficiency, thus broadening the research field of P2P supply chain financing.

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Manufacturer’s financing strategy in a dual-channel supply chain: Third-party platform, bank, and retailer credit financing

Cited by 115 publications

References 51 publications

Mobile payment, third-party payment platform entry and information sharing in supply chains

Mobile payment, third-party payment platform entry and information sharing in supply chains

Optimal financing strategy in a closed-loop supply chain for construction machinery remanufacturing with emissions abatement

P2P supply chain financing, R&D investment and companies' innovation efficiency

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