IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v127y2024ics0305048324000501.html
   My bibliography  Save this article

How to empower commercial satellite supply chain: Insurance, government subsidy or blockchain adoption?

Author

Listed:
  • Dong, Jichang
  • Jing, Yihan
  • He, Zhou
  • Dong, Ciwei

Abstract

The rapid growth of the commercial satellite industry is hindered by its vulnerability to launch failures, demanding the adoption of effective risk mitigation strategies. This research investigates such strategies, including the adoption of launch insurance, government subsidies, and blockchain technology integration within satellite launch supply chains. Utilizing Stackelberg games, we model scenarios with launch insurance (Model I), insurance plus government subsidies (Model IG), blockchain-embedded insurance (Model B), and blockchain-embedded insurance with government subsidies (Model BG), to investigate optimal launch and retail pricing strategies and to enhance launch success probabilities. Our findings demonstrate that government-subsidized launch insurance can create a win-win scenario, while the incorporation of blockchain technology fosters an all-win situation, benefiting all stakeholders, including consumers. Notably, the study reveals a synergistic relationship between government subsidies and blockchain technology, significantly enhancing supply chain efficiency and leading to positive spillover effects on profits and social welfare. This research contributes significantly to the understanding of managerial implications of these strategies within the commercial space launch market.

Suggested Citation

  • Dong, Jichang & Jing, Yihan & He, Zhou & Dong, Ciwei, 2024. "How to empower commercial satellite supply chain: Insurance, government subsidy or blockchain adoption?," Omega, Elsevier, vol. 127(C).
    • Handle: RePEc:eee:jomega:v:127:y:2024:i:c:s0305048324000501
    DOI: 10.1016/j.omega.2024.103083
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305048324000501
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.omega.2024.103083?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wheatley, David & Gzara, Fatma & Jewkes, Elizabeth, 2015. "Logic-based Benders decomposition for an inventory-location problem with service constraints," Omega, Elsevier, vol. 55(C), pages 10-23.
    2. Zhang, Qing & Jiang, Xiuqi & Zheng, Yini, 2023. "Blockchain adoption and gray markets in a global supply chain," Omega, Elsevier, vol. 115(C).
    3. Christopher S. Tang & S. Alex Yang & Jing Wu, 2018. "Sourcing from Suppliers with Financial Constraints and Performance Risk," Manufacturing & Service Operations Management, INFORMS, vol. 20(1), pages 70-84, February.
    4. Choi, Tsan-Ming, 2019. "Blockchain-technology-supported platforms for diamond authentication and certification in luxury supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 17-29.
    5. Fuqiang Zhang & Renyu Zhang, 2018. "Trade-in Remanufacturing, Customer Purchasing Behavior, and Government Policy," Manufacturing & Service Operations Management, INFORMS, vol. 20(4), pages 601-616, October.
    6. Devan Taylor, 2021. "The Importance of Funding Space-Based Research," Papers 2103.02658, arXiv.org, revised Mar 2021.
    7. Jung, Seung Hwan & Feng, Tianjun, 2020. "Government subsidies for green technology development under uncertainty," European Journal of Operational Research, Elsevier, vol. 286(2), pages 726-739.
    8. Zhou, Yanju & Che, Yuan, 2021. "Research on Government Logistics Subsidies for Poverty Alleviation with Non-uniform Distribution of Consumers," Omega, Elsevier, vol. 104(C).
    9. Gouda, Sirish Kumar & Jonnalagedda, Sreelata & Saranga, Haritha, 2016. "Design for the environment: Impact of regulatory policies on product development," European Journal of Operational Research, Elsevier, vol. 248(2), pages 558-570.
    10. Dutta, Pankaj & Choi, Tsan-Ming & Somani, Surabhi & Butala, Richa, 2020. "Blockchain technology in supply chain operations: Applications, challenges and research opportunities," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    11. Zhang, Tianyu & Dong, Peiwu & Chen, Xiangfeng & Gong, Yu, 2023. "The impacts of blockchain adoption on a dual-channel supply chain with risk-averse members," Omega, Elsevier, vol. 114(C).
    12. Chen, Jen-Yi & Dimitrov, Stanko & Pun, Hubert, 2019. "The impact of government subsidy on supply Chains’ sustainability innovation," Omega, Elsevier, vol. 86(C), pages 42-58.
    13. Simonetto, Marco & Sgarbossa, Fabio & Battini, Daria & Govindan, Kannan, 2022. "Closed loop supply chains 4.0: From risks to benefits through advanced technologies. A literature review and research agenda," International Journal of Production Economics, Elsevier, vol. 253(C).
    14. Ping Xiao & Ruli Xiao & Yitian (Sky) Liang & Xinlei (Jack) Chen & Wei Lu, 2020. "The Effects of a Government’s Subsidy Program: Accessibility Beyond Affordability," Management Science, INFORMS, vol. 66(7), pages 3211-3233, July.
    15. Shengli Li & Hsing Kenneth Cheng & Yong Jin, 2018. "Optimal Distribution Strategy for Enterprise Software: Retail, SaaS, or Dual Channel?," Production and Operations Management, Production and Operations Management Society, vol. 27(11), pages 1928-1939, November.
    16. Volodymyr Babich & Gilles Hilary, 2020. "OM Forum—Distributed Ledgers and Operations: What Operations Management Researchers Should Know About Blockchain Technology," Manufacturing & Service Operations Management, INFORMS, vol. 22(2), pages 223-245, March.
    17. Daniel Karapetyan & Snezana Mitrovic-Minic & Krishna T. Malladi & Abraham P. Punnen, 2015. "The Satellite Downlink Scheduling Problem: A Case Study of RADARSAT-2," International Series in Operations Research & Management Science, in: Katta G. Murty (ed.), Case Studies in Operations Research, edition 127, chapter 21, pages 497-516, Springer.
    18. Wenqiang Xiao & Yi Xu, 2018. "Should an Online Retailer Penalize Its Independent Sellers for Stockout?," Production and Operations Management, Production and Operations Management Society, vol. 27(6), pages 1124-1132, June.
    19. Lawrence V. Snyder & Zümbül Atan & Peng Peng & Ying Rong & Amanda J. Schmitt & Burcu Sinsoysal, 2016. "OR/MS models for supply chain disruptions: a review," IISE Transactions, Taylor & Francis Journals, vol. 48(2), pages 89-109, February.
    20. Choi, Tsan-Ming & Ouyang, Xu, 2021. "Initial coin offerings for blockchain based product provenance authentication platforms," International Journal of Production Economics, Elsevier, vol. 233(C).
    21. Ren, Ting-hai & Zeng, Neng-min & Wang, Da-fei & Yuan, Kai-fu, 2023. "Authorization or encroachment: Effects of channel encroachment on decisions and performance in software service supply chains," International Journal of Production Economics, Elsevier, vol. 257(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cao, Yu & Yi, Chaoqun & Wan, Guangyu & Hu, Hanli & Li, Qingsong & Wang, Shouyang, 2022. "An analysis on the role of blockchain-based platforms in agricultural supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    2. Dong, Ciwei & Chen, Chenyi & Shi, Xiutian & Ng, Chi To, 2021. "Operations strategy for supply chain finance with asset-backed securitization: Centralization and blockchain adoption," International Journal of Production Economics, Elsevier, vol. 241(C).
    3. Xu, Xiaoping & Yan, Luling & Choi, Tsan-Ming & Cheng, T.C.E., 2023. "When Is It Wise to Use Blockchain for Platform Operations with Remanufacturing?," European Journal of Operational Research, Elsevier, vol. 309(3), pages 1073-1090.
    4. Zhou, Yu & Gao, Xiang & Luo, Suyuan & Xiong, Yu & Ye, Niangyue, 2022. "Anti-Counterfeiting in a retail Platform: A Game-Theoretic approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    5. Xu, Xiaoping & He, Ping & Zhou, Li & Cheng, T.C.E., 2023. "Coordination of a platform-based supply chain in the marketplace or reselling mode considering cross-channel effect and blockchain technology," European Journal of Operational Research, Elsevier, vol. 309(1), pages 170-187.
    6. Niu, Baozhuang & Ruan, Yiyuan & Xu, Haotao, 2023. "Turn a blind eye? E-tailer's blockchain participation considering upstream competition between copycats and brands," International Journal of Production Economics, Elsevier, vol. 265(C).
    7. Yu, Yugang & Luo, Yifei & Shi, Ye, 2022. "Adoption of blockchain technology in a two-stage supply chain: Spillover effect on workforce," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).
    8. Niu, Baozhuang & Xu, Haotao & Chen, Lei, 2022. "Creating all-win by blockchain in a remanufacturing supply chain with consumer risk-aversion and quality untrust," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    9. Li, Qingying & Ma, Manqiong & Shi, Tianqin & Zhu, Chen, 2022. "Green investment in a sustainable supply chain: The role of blockchain and fairness," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    10. Wang, Manman & Yang, Feng & Shan, Feifei & Guo, Yu, 2024. "Blockchain adoption for combating remanufacturing perceived risks in a reverse supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 183(C).
    11. Choi, Tsan-Ming & Ouyang, Xu, 2021. "Initial coin offerings for blockchain based product provenance authentication platforms," International Journal of Production Economics, Elsevier, vol. 233(C).
    12. Li, Zhiwen & Xu, Xianhao & Bai, Qingguo & Guan, Xu & Zeng, Kuan, 2021. "The interplay between blockchain adoption and channel selection in combating counterfeits," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    13. De-Qing Ma & Xiao-Qing Wang & Xue Wang & Jin-Song Hu, 2023. "Achieving Triple Benefits in a Platform-Based Closed-Loop Supply Chain: The Optimal Combination between Recycling Channel and Blockchain," Sustainability, MDPI, vol. 15(5), pages 1-40, February.
    14. Chu, Xiang & Wang, Rui & Lin, Yan & Li, Yantong, 2022. "Building trust in online trade-in programs with a blockchain-enabled system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    15. He, Chao & Tan, Chunqiao & Ip, W.H. & Wu, C.H., 2023. "Combating counterfeits with the Blockchain-technology-supported platform under government enforcement," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    16. Sun, Mingyao & Chai, Qiangfei & Ng, Chi To, 2023. "Managing the quality-speed tradeoff in blockchain-supported healthcare diagnostic services," Omega, Elsevier, vol. 120(C).
    17. Shen, Bin & Xu, Xiaoyan & Yuan, Quan, 2020. "Selling secondhand products through an online platform with blockchain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    18. Wang, Siyi & Cai, Xiaoqiang & Guan, Lei & Zhang, Lianmin, 2022. "What do institutional investors bring to initial coin offerings (ICOs)?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    19. Gao, Jinwu & Jiang, Shuman & Zhang, Yi, 2024. "To adopt blockchain or not? A game theoretic analysis of profit and environmental impact in decommissioned EV lithium-ion battery recycling," Applied Energy, Elsevier, vol. 367(C).
    20. Xu, Xiaoping & Choi, Tsan-Ming, 2021. "Supply chain operations with online platforms under the cap-and-trade regulation: Impacts of using blockchain technology," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:127:y:2024:i:c:s0305048324000501. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.