Impact of bargaining power on supply chain profit allocation: a game-theoretic study

2019 ◽  
Vol 16 (3) ◽  
pp. 398-416
Author(s):  
Sanjay Prasad ◽  
Ravi Shankar ◽  
Sreejit Roy
Keyword(s):  
Supply Chain ◽  
Bargaining Power ◽  
Supply Chain Coordination ◽  
Infinite Horizon ◽  
The Other ◽  
Future Research ◽  
Theoretic Approach ◽  
Content Type ◽  
Bargaining Position ◽  
The Impact

Purpose The purpose of this paper is to study the impact of bargaining powers of firms in supply chain coordination. It studies selected aspects of bargaining powers, namely, impatience, breakdown probability and outside options, and uses a bargaining-theoretic approach to analyze surplus allocation in a coordinated supply chain. Design/methodology/approach This paper proposes one-supplier one-buyer infinite horizon supply chain coordination game, where suppliers and buyers negotiate for the allocation of supply chain surplus arising out of supply chain coordination. Various aspects of the bargaining power of the negotiating parties are modeled and the paper studies impact of power levels on the results of the bargaining game. Findings A significance of impatience on the bargaining process and the surplus split has been established. This paper also demonstrates a rather counter-intuitive aspect of bargaining that the impatience (as perceived by the other party) can improve the bargaining position and therefore share of profits. Research limitations/implications This paper has limited its analysis to three key components of bargaining power. Future works can study other aspects of bargaining power, namely information asymmetry, learning curve, inside options, etc. Further, the paper has considered an infinite horizon model – this assumption can be relaxed in future research. Practical implications Equations to derive optimal split of the surplus have been derived and can be leveraged to design an autonomous bargaining agent to discover equilibrium profit splits in a cloud or e-commerce setting. Further, insights from this paper can be leveraged by managers to understand their relative bargaining power and drive to obtain the best profit split. Originality/value This paper establishes that impatience (in terms of counter-offer probability) has a significant impact on the bargaining position and on the split of the surplus that the firm can get for themselves. It establishes the advantage of higher levels of impatience, provided the other party recognizes the impatience and factors it in their decision-making process.

scholarly journals Reading on and between the lines: risk identification in collaborative and adversarial buyer–supplier relationships

2018 ◽  
Vol 23 (4) ◽  
pp. 351-376 ◽  
Author(s):  
Yiyi Fan ◽  
Mark Stevenson
Keyword(s):  
Social Capital ◽  
Supply Chain ◽  
Risk Identification ◽  
Social Capital Theory ◽  
Future Research ◽  
Supplier Relationships ◽  
Content Type ◽  
Signalling Theory ◽  
Multi Level ◽  
The Impact

Purpose This paper aims to investigate how supply chain risks can be identified in both collaborative and adversarial buyer–supplier relationships (BSRs). Design/methodology/approach This research includes a multiple-case study involving ten Chinese manufacturers with two informants per organisation. Data have been interpreted from a multi-level social capital perspective (i.e. from both an individual and organisational level), supplemented by signalling theory. Findings Buyers use different risk identification strategies or apply the same strategy in different ways according to the BSR type. The impact of organisational social capital on risk identification is contingent upon the degree to which individual social capital is deployed in a way that benefits an individual’s own agenda versus that of the organisation. Signalling theory generally complements social capital theory and helps further understand how buyers can identify risks, especially in adversarial BSRs, e.g. by using indirect signals from suppliers or other supply chain actors to “read between the lines” and anticipate risks. Research limitations/implications Data collection is focussed on China and is from the buyer side only. Future research could explore other contexts and include the supplier perspective. Practical implications The types of relationships that are developed by buyers with their supply chain partners at an organisational and an individual level have implications for risk exposure and how risks can be identified. The multi-level analysis highlights how strategies such as employee rotation and retention can be deployed to support risk identification. Originality/value Much of the extant literature on supply chain risk management is focussed on risk mitigation, whereas risk identification is under-represented. A unique case-based insight is provided into risk identification in different types of BSRs by using a multi-level social capital approach complemented by signalling theory.

scholarly journals Antecedents to buyer-supplier coordination in the pharmaceutical supply chain

2020 ◽  
Vol 14 (2) ◽  
pp. 289-303
Author(s):  
Thanigavelan Jambulingam ◽  
Ravi Kathuria
Keyword(s):  
Supply Chain ◽  
Distribution System ◽  
Supply Chain Coordination ◽  
Regulatory Compliance ◽  
Future Research ◽  
Chain Process ◽  
Pharmaceutical Supply Chain ◽  
Content Type ◽  
Pharmaceutical Distribution ◽  
Process Coordination

Purpose The purpose of this study is to understand the antecedents that influence supply chain coordination in the pharmaceutical supply chain using the transaction cost analysis framework. Design/methodology/approach Data from 156 retail pharmacies on their relationship with the pharmaceutical wholesalers are used to test the hypotheses. Findings The findings of this paper show the importance of antecedents that are based on the transactional cost theory, such as asset specificity and environmental uncertainty. These antecedents impact the supply chain process coordination at different levels – transactional, operational and strategic. Research limitations/implications Future research may investigate additional antecedents using other theoretical lenses. Practical implications Pharmaceutical wholesalers are dependent on pharmaceutical manufacturers for the supply of products and face intense competition that results in lower profit margins. Given that the pharmaceutical industry is strictly regulated, the wholesaler facilitates regulatory compliance of the manufacturers in the distribution process by coordinating with them. But the wholesalers do also face a constant threat from the manufacturers, who could potentially bypass the wholesalers (disintermediation) and go directly to the pharmacies. To counterbalance the dependence, the wholesalers strive to achieve loyalty with the retail pharmacies. Through supply chain coordination, the wholesalers achieve efficiency in procurement for the pharmacies, thus reducing cost and improving their competitive advantage. Social implications Supply chain coordination in the pharmaceutical supply chain improves the safety and security of the pharmaceutical distribution system. Originality/value This paper contributes to the supply chain coordination stream of literature. To the best of the authors’ knowledge, this is the first study to develop the three levels of process coordination in the pharmaceutical supply chain context. This paper shows how process coordination can be achieved between the dyad without vertical integration.

Value of IT in supply chain planning

2015 ◽  
Vol 28 (1) ◽  
pp. 77-92 ◽  
Author(s):  
Christoph Fuchs ◽  
Andreas Otto
Keyword(s):  
Supply Chain ◽  
Value Creation ◽  
Manufacturing Industry ◽  
Continuous Production ◽  
Future Research ◽  
Supply Chain Planning ◽  
Production Flow ◽  
Content Type ◽  
Value Of It ◽  
The Impact

Purpose – The purpose of this paper is to understand value creation of information technology (IT) in supply chain planning (SCP). The impact of different IT components in SCP remains unclear and requires some thorough research. In addition, an analysis of the optimization dimension provides insights into intra-functional, inter-functional and cross-company optimization. Design/methodology/approach – A survey was conducted among German companies using a continuous production flow. In total, 47 of 193 contacted companies completed the web survey, which corresponds to a response rate of 24 percent. Findings – IT functionality for SCP is widely spread. The value of IT functionality in SCP is tremendous. Implementations in demand fulfillment and available-to-promise (ATP) have the biggest value creation potential. Supply chain performance indicators can be improved by investments in certain functional domains. Packaged standard software is widely distributed and should be considered as the first option. IT functionality to improve intra-functional processes is significantly more often implemented than IT functionality for inter-functional or cross-company process optimization although the realized value is comparable. Research limitations/implications – Respondents of the survey are limited to the German continuous production flow industry. Future research could be interesting in the discrete manufacturing industry. Originality/value – The paper provides empirical insights into the value of IT in SCP where data are less available than in the ERP context. Furthermore, this paper provides first insights into the optimization dimension whether processes are optimized intra-functional, inter-functional or cross-company.

scholarly journals The past, the present and the future of accounting for human rights

2016 ◽  
Vol 29 (4) ◽  
pp. 526-541 ◽  
Author(s):  
Ken McPhail ◽  
John Ferguson
Keyword(s):  
Human Rights ◽  
The Other ◽  
Future Research ◽  
Special Issue ◽  
Content Type ◽  
Accounting Research ◽  
Business And Human Rights ◽  
Policy Domain ◽  
Guiding Principles ◽  
The Impact

Purpose – The purpose of this paper is to discuss a number of important recent developments in the area of business and human rights and considers the impact of these developments for accounting, assurance and reporting. Following the UN endorsement of the Guiding Principles on Business and Human Rights (the Guiding Principles) in June 2011, initiatives related to their implementation have advanced at a rapid pace. Despite the centrality of accounting, assurance and reporting to some of the key initiates – accounting research has, hitherto, lagged behind this growing momentum. In order to address this lacunae, this paper develops an agenda for future research in the area of accounting and human rights. In doing so, the paper provides an overview of the important contributions advanced by the other papers in this special issue of Accounting, Auditing and Accountability Journal (AAAJ). Design/methodology/approach – This paper draws together and identifies key issues and themes related to the rapidly evolving research and policy domain of business and human rights and considers the relevance of these issues to accounting research. Findings – The paper highlights the wide-ranging impact the Guiding Principles and other developments in business and human rights have for accounting practice and draws attention to potential areas of research for accounting scholars. In particular, the paper highlights the emergence of business and human rights due diligence requirements, including their management and reporting. Further, the paper draws attention to the development of business and human rights reporting and assurance practice – which, while still in its infancy, has gathered considerable momentum and support. Research limitations/implications – The paper provides important insights into emerging issues and developments in business and human rights that have clear relevance to accounting research and practice. Originality/value – This paper, and the other contributions to this special issue of AAAJ, provide a basis and a research agenda for accounting scholars seeking to undertake research in this significant and emerging field.

Coordination through cooperative advertising in a two-period supply chain with retail competition

Kybernetes ◽  
2019 ◽  
Vol 48 (6) ◽  
pp. 1175-1194 ◽  
Author(s):  
Qingyun Xu ◽  
Bing Xu ◽  
Qiushi Bo ◽  
Yi He
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
The Other ◽  
Decision Variable ◽  
Cooperative Advertising ◽  
Fashion Industry ◽  
Retail Competition ◽  
Product Price ◽  
Content Type ◽  
Advertising Strategy

Purpose Most firms in the fashion industry frequently design and promote new products, which leads to a two-period phenomenon in product sales. This study aims to examine the optimal advertising efforts of each channel member and the subsidy strategies of the manufacturer with retail competition in a two-period supply chain. Design/methodology/approach By utilizing the game theory, this study developed a cooperative advertising model that considers the element of retailer competition in a two-period supply chain. Findings The main results of this study are as follows. An increase in the subsidy rate of one retailer’s advertising cost will lead to a decrease in the share of the other. When a manufacturer’s marginal profit from one retailer is considerably larger than that from the other, the manufacturer will share more advertising cost with the former. This study demonstrates that a bilateral participation contract can achieve supply chain coordination and increases the likelihood of retailers to participate in this contract when competition effect is small. Research limitations/implications First, product price is not a decision variable in this model. This concern can be studied in future work. Second, the one-manufacturer and two-retailer supply chain can be expanded to competitive manufacturers. Practical implications This study provides some decision references for the manufacturer and retailer on advertising strategies. The manufacturer can also gain insights into cooperative advertising strategy when facing a competitive retail environment. Originality/value Most previous studies related to cooperative advertising focused on a single-period supply chain. This study investigates cooperative advertising strategy with retail competition in two-period sales and explores the potential coordinating power of a bilateral participation contract.

Supply chain management 4.0: a literature review and research framework

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kamar Zekhnini ◽  
Anass Cherrafi ◽  
Imane Bouhaddou ◽  
Youssef Benghabrit ◽  
Jose Arturo Garza-Reyes
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Literature Review ◽  
Bibliometric Analysis ◽  
State Of The Art ◽  
Future Research ◽  
Subject Field ◽  
Chain Management ◽  
Content Type ◽  
The Impact

PurposeThis article presents a review of the existing state-of-the-art literature concerning Supply Chain Management 4.0 (SCM 4.0) and identifies and evaluates the relationship between digital technologies and Supply Chain Management.Design/methodology/approachA literature review of state-of-the-art publications in the subject field and a bibliometric analysis were conducted.FindingsThe paper identifies the impact of novel technologies on the different supply chain processes. Furthermore, the paper develops a roadmap framework for future research and practice.Practical implicationsThe proposed work is useful for both academics and practitioners as it outlines the pillar components for every supply chain transformation. It also proposes a range of research questions that can be used as a base to guide the future research direction of the field.Originality/valueThis paper presents a novel and original literature review-based study on SCM4.0 as no comprehensive review is available where bibliometric analysis, motivations, barriers and technologies' impact on different SC processes have been considered.

Coordination mechanisms for digital and sustainable textile supply chain

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Patanjal Kumar ◽  
Dheeraj Sharma ◽  
Peeyush Pandey
Keyword(s):  
Supply Chain ◽  
Deterministic Model ◽  
Virtual Organization ◽  
Supply Chain Coordination ◽  
Theoretic Model ◽  
Theoretic Approach ◽  
Sustainable Supply Chain ◽  
Content Type ◽  
Coordination Model ◽  
Game Theoretic

PurposeSupply chain network is complicated to manage due to the involvement of a number of agents. Formation of virtual organization using Industry 4.0 (I4.0) is an approach to improve the efficiency and effectiveness and to overcome the complexities of the channel. However, the task of managing the channel further becomes complicated after incorporating sustainability into the supply chain. To fill this gap, this paper focuses on designing of mechanism and demonstration of I4.0-based virtual organization to coordinate sustainable supply chain.Design/methodology/approachIn this paper, we model and compare I4.0-based virtual organization models using four other traditional contracts with centralized supply chain. The non-cooperative game theoretic approach has been used for the analysis of models.FindingsOur game-theoretic analysis shows that investment in I4.0 and sustainable innovation are beneficial for the overall supply chain. Our results show that linear two-part tariff contract and I4.0-based virtual organization model can perfectly coordinated with the supply chain.Research limitations/implicationsThis study consider deterministic model settings with full information game. Therefore researchers are encouraged to study I4.0-based coordination models under information asymmetry and uncertain situations.Practical implicationsThe paper includes implications for the development of I4.0-based coordination model to tackle the problems of channel coordination.Originality/valueThis study proposes I4.0-based game-theoretic model for the sustainable supply chain coordination.

Impact of internal and external factors on halal logistics implementation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aries Susanty ◽  
Nia Budi Puspitasari ◽  
Sumunar Jati ◽  
Oktivia Selvina
Keyword(s):  
Conceptual Model ◽  
Corporate Image ◽  
External Factors ◽  
The Other ◽  
Future Research ◽  
Muslim Country ◽  
Internal Factors ◽  
Content Type ◽  
Internal And External Factors ◽  
The Impact

Purpose The purpose of this paper is as follows: first, this study aims to identify the impact of internal and external factors on the implementation of halal logistics (IHL). Second, this study aims to investigate the impact of internal factors on the IHL through competitive pressure (COP) as a moderating variable. Design/methodology/approach This study used primary data that were collected through offline questionnaires. The questionnaires were intended to identify the internal and external conditions of a company and the level of the IHL. The internal condition consists of five factors, namely corporate image and reputation (CRE), entrepreneurial intensity, social responsibility (SRE), expected business benefit and halal integrity (HIN). The external factors consist of demand or customer pressure (DCP), government support (GOV), market share expansion and COP. This study considered the factors belonged to internal and external companies on the basis of the conceptual model from Ab Talib et al. (2015), Zailaini et al. (2015) and Ab Talib and Chin (2018) as they have clearly distinguished the important factors for the implementation of the concept of halal into internal and external groups and most of those factors are frequently stated by the other researchers. Findings There were 148 questionnaires administrated, 84.5% of which were properly filled in, completed and returned. For internal factors, the result of the study confirms that CRE, SRE and HIN have a positive significant impact on the IHL. For external factors, the result of the study confirms that DCP, GOV and COP have a positive significant impact on the IHL. Then, the result of the study also confirms that COP can make the impact of good CRE on the IHL stronger. This condition did not happen for the other internal factors. Research limitations/implications First, it is debatable that internal and external factors and the IHL are only measured by the Likert scales. Future research may take the benefits of inducing qualitative approaches to better measure the condition of internal and external factors and the level of IHL practices through observation and probing. Second, this study was limited to the respondents from companies in Indonesia, which is a Muslim-dominant country and this study does not take into account the differences in the target market and the company’s owner, size of operation and financial capacity. Future research should test the conceptual model in a non-Muslim country and should include controlling for variables to generate a more conducive finding. Third, this study only uses the limited variable as the internal and external factors. Therefore, as many variables represent technological, organisational and environmental factors, they could be included in the future research framework. Practical implications This study practically contributes to the halal concept implementation body of knowledge by identifying the relationships between the internal and external factors and the IHL. Understanding this relationship will help the management of food, beverage and ingredient companies, as well as the government or policymakers in making better decisions and strategies to strengthen the IHL. Social implications The IHL may help the food, beverage and ingredient companies to be competitive and achieve organisational improvements. Originality/value This study is among the few studies that scrutinized the rationale behind the IHL by Indonesian companies. Although halal logistics plays a key role in protecting the halal status of any given product, this topic is still rarely explored, especially with the case study of Indonesian companies.

Information sharing in a green supply chain with promotional effort

Kybernetes ◽  
2020 ◽  
Vol 49 (11) ◽  
pp. 2683-2712 ◽  
Author(s):  
Junfei Ding ◽  
Wenbin Wang
Keyword(s):  
Supply Chain ◽  
Information Sharing ◽  
Consumer Surplus ◽  
Green Supply Chain ◽  
Future Research ◽  
Content Type ◽  
Promotional Effort ◽  
Demand Information ◽  
The Impact ◽  
Share Information

Purpose The purpose of this paper is to investigate the retailer’s strategy of information sharing in a green supply chain with promotional effort, and the impact of information sharing on the decisions and profits of the manufacturer and the retailer. Design/methodology/approach The developed models aim to maximize the profits of the manufacturer, the retailer and the green supply chain system. The game theory is used to obtain the equilibrium solutions of both the manufacturer and the retailer. A two-part compensation (TPC) contract is designed to motivate the retailer to share information with the retailer. Numerical examples are used to show the impact of parameters on decisions by Matlab 2014. Findings The results show that the green degree increases while the promotional effort level decreases when the manufacturer receives the larger demand information from the retailer; information sharing leads to a profit increase to the manufacturer and a profit loss to the retailer, but can increase the profit of supply chain under a certain condition; information sharing reduces the expected consumer surplus. The TPC contract designed in this paper can not only motivate the retailer to share information but also increases the consumer surplus. Research limitations/implications The study has been done in a monopoly environment where only a retailer can forecast demand information. It is an interesting direction of future research when considering there are more retailers who can forecast such information in a supply chain. Originality/value There exist two main aspects that are different from the existing literature. The stochastic demand function related to the retail price, the green degree and the promotional effort have never appeared in previous literature. This paper considers a green product supply chain with a manufacturer who produces green products and a retailer who has an information advantage because of her promotional effort; this paper investigates the impact of information sharing on the consumer surplus and designs a contract to coordinate the green supply chain.

The impact of corporate distress along the supply chain: evidences from United States

2019 ◽  
Vol 24 (4) ◽  
pp. 498-508 ◽  
Author(s):  
Lucia Gibilaro ◽  
Gianluca Mattarocci
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
The Other ◽  
Credit Policy ◽  
Growth Opportunities ◽  
Supply Chain Disruption ◽  
Content Type ◽  
Performance Risk ◽  
The Impact ◽  
Corporate Distress

PurposeThe aim of the study is to provide evidence on the distress in the supply chain and its impact on the trade credit policy, firms’ performance and risk and their growth opportunities. Trade credit creates a strict relation between suppliers and customers that cannot be easily substituted over time. The linkages established between firms in a supply chain are a key value added for all members that could represent a competitive advantage over independent market players. In the event of a supply chain disruption, all members could suffer from a decrease in profitability and an increase in risk. Nonetheless, no empirical evidence exists on the expected economic and financial effects on pertinent suppliers and customers.Design/methodology/approachThis paper examines the US market and evaluates the impact of a supply chain member’s default on the other members, looking at both the customers’ and suppliers’ default. The sample considers all firms in the USA disclosing entry into bankruptcy proceedings through EDGAR filings that were not classified as financial intermediaries between 2012 and 2016. The analysis considers the effect of distress on the supply chain (suppliers or customers) on the trade credit policy, performance, risk and growth perspectives of connected firms.FindingsThe results show that a supply chain disruption not only modifies the trade credit policy but also affects firm risk and profitability and the financing sources available to support firm growth. Empirical evidence shows that the bankruptcy of a member of the supply chain affects the trade credit policy of all the other members. The costs related to default are economically and financially relevant to all supply chain members and affect the resiliency of the supply chain beyond the short term.Originality/valueThis paper uses an original and innovative database to empirically test the impact of corporate distress on supply chain financing, performance, risk and growth opportunities.

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