Impact of power structures in a subcontracting assembly system

Li, Guo; Liu, Lin; Liu, Mengqi; Sethi, Suresh P.

doi:10.1007/s10479-018-3041-6

Cited by 14 publications

(2 citation statements)

References 44 publications

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“…Thus, adding the production cost to the game model is an interesting and worthwhile discussion (Li et al., ). Second, this study does not consider the influence of decision sequence on the game model (Feng et al., 2018; Li et al., ). Therefore, a topic worth exploring is whether an alternative gaming sequence will lead to new findings.…”

Section: Resultsmentioning

confidence: 99%

Financing strategies for a capital‐constrained manufacturer in a dual‐channel supply chain

Xiao

2019

Int Trans Operational Res

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This study investigates a co-opetition-type dual-channel supply chain that consists of a competitive supplier (CS) and a capital-constrained manufacturer (CCM). The CCM procures key components from and simultaneously competes with the CS in the consumer market. To address the CCM's capital constraint, we consider three financing strategies, namely, trade credit, bank loan, and hybrid financing (i.e., combined use of bank loan and equity financing). Game models are established to characterize the interactions between the CS and CCM. The corresponding equilibria are derived under each strategy. Then, comparative analyses are conducted, and the CS's and CCM's preference structures regarding the three strategies are revealed. On this basis, the equilibrium strategy can be concluded as either trade credit or hybrid financing, but never bank loan. Specifically, when the equity financing ratio is small or large, trade credit is an equilibrium strategy. When the equity financing ratio is medium, the equilibrium strategy between trade credit and hybrid financing is determined by consumers' product preference and loan interest rate.accounted for a combined shipping volume of over 533 million units in 2017. This value is equivalent to 36.3% of the global smartphone market. 2 Although the two companies are in fierce competition in their industry, they cooperate with each other in many areas. 3 Notably, Samsung has provided Apple with processors and OLED screens for many years. 4 Such "co-opetition" is prevalent in many high-technology industries. Other typical examples are IBM and Cisco. The former purchases network equipment from the latter, while simultaneously competing in the overall server market. 5 The dual-channel supply chain, in which a supplier provides a manufacturer with key components while the two companies compete with each other in the final market, is common in real businesses. However, in practice, certain manufacturers in such dual-channel supply chains may lack capital to support production. For example, the smartphone screens used by Gionee, a well-known smartphone manufacturer in China, have always been provided by Foxconn. However, in recent years, Gionee has encountered capital-shortage problems and sought financing instruments to support its production. Consequently, one of the critical challenges for Gionee is selecting a suitable financing strategy.Accordingly, we extend the current literature by examining a co-opetition-type dual-channel supply chain, which consists of a competitive supplier (CS) and a capital-constrained manufacturer (CCM). The two firms are cooperative in component supply but competitive in the consumer market. Specifically, the CCM procures components from the CS. Meanwhile, the two companies compete by selling substitutable products in the same consumer market. For the capital constraint of the CCM, we consider three financing strategies. In Strategy 1 (trade credit), the CS offers trade credit to the CCM. In Strategy 2 (bank loan), the CCM seeks a bank loan to support its ...

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Section: Resultsmentioning

confidence: 99%

Financing strategies for a capital‐constrained manufacturer in a dual‐channel supply chain

Xiao

2019

Int Trans Operational Res

Self Cite

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“…Some scholars studied the power structure of traditional supply chains that do not consider low carbon emissions [37][38][39][40][41]. Li et al [42] explored the influence of power structures on the pricing and production decisions in a supply chain consisting of two suppliers and one manufacturer. Matsui [43] considered a typical three-echelon supply chain and studied the impact of power structure on the profitability in the supply chain facing stochastic demand.…”

Section: Power Structures Of the Supply Chainmentioning

confidence: 99%

Allocation of the Carbon Emission Abatement Target in Low Carbon Supply Chain Considering Power Structure

Huang

Han

et al. 2023

Sustainability

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The proposal of China’s dual carbon strategy is not only a kind of pressure but also an opportunity for enterprises. Both upstream and downstream enterprises in the supply chain pay more attention to carbon emission reduction, and consumers are gradually turning to a low-carbon preference. How carbon reduction targets are allocated among supply chain members with different technical efficiency and market opportunities will directly affect supply chain performance and social welfare. Power structure is an important factor that dominates the decision-making of the supply chain, so we establish the low-carbon supply chain model under three different power structures: manufacturer-led, retailer-led, and power pairs between two parties. We study the government distribution decisions of carbon emissions reduction targets under different supply chain power structures and discuss the influence of supply chain power structures on carbon emissions reduction distribution decisions and social welfare. The study found that if the carbon emissions reduction target increases, the government will adjust the allocation strategy to increase the proportion of enterprises whose emissions cuts have less impact on market demand. The study also found that the government will allocate more emissions reduction to enterprises with higher emissions reduction efficiency, and enterprises whose emissions reductions have a greater impact on market demand. When supply chain enterprises have equal power, the supply chain will have greater social welfare and market demand, but not necessarily greater supply chain profits.

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Power and Digitalization Within the Supply Chain - An Examination of Power Structures Under the Influence of Digitalization and Digital Transformation

Brinker

2024

Lecture Notes in Logistics

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Impact of power structures in a subcontracting assembly system

Cited by 14 publications

References 44 publications

Financing strategies for a capital‐constrained manufacturer in a dual‐channel supply chain

Financing strategies for a capital‐constrained manufacturer in a dual‐channel supply chain

Allocation of the Carbon Emission Abatement Target in Low Carbon Supply Chain Considering Power Structure

Power and Digitalization Within the Supply Chain - An Examination of Power Structures Under the Influence of Digitalization and Digital Transformation

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