“…This occurs between firms in different echelons of a supply chain and can eliminate the negative influence of double marginalization (Gao, 2015;Gunaratne, Krook, & Andersson, 2022;Kouvelis, Xiao, & Yang, 2018;Lin et al, 2014;Wei, Zhao, & Hou, 2019). Many manufacturers adopt vertical integration, therefore, to gain competitive advantage (Pi & Li, 2022), allowing them to control retail prices (Martín-Herr an & Taboubi, 2015;Wei et al, 2019), manage changes in demand efficiently and exert tighter control over the quality of supplies and the product (Wei et al, 2019).…”