“…Zhang et al (2023) investigated the manufacturer's encroachment decision and the retailer's financing choice decision under different power structures. Lu and Menezes (2024) examined the impact of power structure on the vertical competition and product proliferation in a supply chain. However, the above papers did not consider the online platform operation.…”
Section: Power Structure In Supply Chainsmentioning
PurposeThis paper forms an e-commerce supply chain that include a manufacturer providing products and an online platform providing service. The reselling platform mode and the agent platform mode are considered through an exploration of the manufacturer Stackelberg (MS), vertical Nash (VN), platform Stackelberg (PS) power structures. The purpose of this paper is to explore the pricing and platform service decisions under different platform selling modes and channel power structures.Design/methodology/approachBased on the game theory models, this paper investigates the interaction between the manufacturer and the online platform under four different scenarios. The optimal solutions of four models are provided. Through comparison analyses, this paper evaluates the impacts of platform selling mode and channel power structure on the pricing and platform service decisions and the members’ profits.FindingsThe manufacturer prefers the MS power structure in any platform mode. The online platform prefers the PS (MS) power structure under a low (high) service cost efficiency in the reselling platform mode, while prefers the PS and VN power structures in the agent platform mode. Moreover, the manufacturer prefers the agent (reselling) platform mode under a low (high) service cost efficiency in any power structure. The online platform prefers the reselling platform mode in the MS and PS power structures, while prefers the reselling (agent) platform mode under a low (high) service cost efficiency in the VN power structures.Originality/valueThe analysis result provides important managerial implications that help the supply chain members develop a better understanding of the selection of the platform selling mode and the effect of the channel power structure in the presence of platform service.
“…Zhang et al (2023) investigated the manufacturer's encroachment decision and the retailer's financing choice decision under different power structures. Lu and Menezes (2024) examined the impact of power structure on the vertical competition and product proliferation in a supply chain. However, the above papers did not consider the online platform operation.…”
Section: Power Structure In Supply Chainsmentioning
PurposeThis paper forms an e-commerce supply chain that include a manufacturer providing products and an online platform providing service. The reselling platform mode and the agent platform mode are considered through an exploration of the manufacturer Stackelberg (MS), vertical Nash (VN), platform Stackelberg (PS) power structures. The purpose of this paper is to explore the pricing and platform service decisions under different platform selling modes and channel power structures.Design/methodology/approachBased on the game theory models, this paper investigates the interaction between the manufacturer and the online platform under four different scenarios. The optimal solutions of four models are provided. Through comparison analyses, this paper evaluates the impacts of platform selling mode and channel power structure on the pricing and platform service decisions and the members’ profits.FindingsThe manufacturer prefers the MS power structure in any platform mode. The online platform prefers the PS (MS) power structure under a low (high) service cost efficiency in the reselling platform mode, while prefers the PS and VN power structures in the agent platform mode. Moreover, the manufacturer prefers the agent (reselling) platform mode under a low (high) service cost efficiency in any power structure. The online platform prefers the reselling platform mode in the MS and PS power structures, while prefers the reselling (agent) platform mode under a low (high) service cost efficiency in the VN power structures.Originality/valueThe analysis result provides important managerial implications that help the supply chain members develop a better understanding of the selection of the platform selling mode and the effect of the channel power structure in the presence of platform service.
“…Our research is also closely related to the examination of power structure and its impact on corporate decision‐making and performance (Chai et al, 2021; Luo et al, 2017; Wang et al, 2023). Numerous studies focus on the game between supply chain members under various supply chain power structures (Lu & Menezes, 2024; Zhang et al, 2022). Xue et al (2014) investigated the influence of different power structures on optimal pricing strategies for manufacturers and retailers, as well as on consumer surplus.…”
Considering scenarios with and without green advertising, we compare the optimal solutions and performance of both green and non‐green manufacturers under three power structures. Green manufacturers who invest in green advertising experience enhanced output and profits, with the highest level of green advertising and profit improvement when they dominate market. In most cases, green advertising investment tends to decrease the output and profits of non‐green manufacturers. However, under specific circumstances, such as when non‐green manufacturers dominate market and the production cost of green products exceeds a certain threshold, investing in green advertising can unexpectedly stimulate demand for non‐green products.
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