IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v53y2020ics0969698919301936.html
   My bibliography  Save this article

A supply chain coordination mechanism with suppliers’ effort performance level and fairness concern

Author

Listed:
  • Liu, Yong
  • Wang, Dong-dong
  • Xu, Qian

Abstract

The interest conflict is an important factor affecting the supply chain (SC) performance, so it is very important to set up a reasonable coordination mechanism to eliminate the SC conflicts. Considering the fact that suppliers' effort performance level and fairness concern behavior are important factors affecting SC performance, we can develop SC models to analyze and compare SC decisions under the centralized decision and decentralized decision, and then we design a SC coordination mechanism through cost sharing. The results show that the designed coordination mechanism can effectively solve the conflict problem of SC, mobilize SC members’ motivation and initiative without damaging their profits, and realize the long-term cooperation between the retailer and multi-suppliers. It also can achieve the Pareto improvement and the sustainable development of SC.

Suggested Citation

  • Liu, Yong & Wang, Dong-dong & Xu, Qian, 2020. "A supply chain coordination mechanism with suppliers’ effort performance level and fairness concern," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:joreco:v:53:y:2020:i:c:s0969698919301936
    DOI: 10.1016/j.jretconser.2019.101950
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698919301936
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2019.101950?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. Lee, Jun-Yeon & Cho, Richard K. & Paik, Seung-Kuk, 2016. "Supply chain coordination in vendor-managed inventory systems with stockout-cost sharing under limited storage capacity," European Journal of Operational Research, Elsevier, vol. 248(1), pages 95-106.
    2. Ge, Zehui & Zhang, Zi-Ke & Lü, Linyuan & Zhou, Tao & Xi, Ning, 2012. "How altruism works: An evolutionary model of supply networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(3), pages 647-655.
    3. Huynh, Candice H. & Pan, Wenting, 2015. "Operational strategies for supplier and retailer with risk preference under VMI contract," International Journal of Production Economics, Elsevier, vol. 169(C), pages 413-421.
    4. Li, Bo & Jiang, Yushan, 2019. "Impacts of returns policy under supplier encroachment with risk-averse retailer," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 104-115.
    5. Venkatesh, V.G. & Rathi, Snehal & Patwa, Sriyans, 2015. "Analysis on supply chain risks in Indian apparel retail chains and proposal of risk prioritization model using Interpretive structural modeling," Journal of Retailing and Consumer Services, Elsevier, vol. 26(C), pages 153-167.
    6. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 817-868.
    7. Biswas, Indranil & Avittathur, Balram & Chatterjee, Ashis K, 2016. "Impact of structure, market share and information asymmetry on supply contracts for a single supplier multiple buyer network," European Journal of Operational Research, Elsevier, vol. 253(3), pages 593-601.
    8. Li, Tian & Zhang, Hongtao, 2015. "Information sharing in a supply chain with a make-to-stock manufacturer," Omega, Elsevier, vol. 50(C), pages 115-125.
    9. Xu, Guangye & Dan, Bin & Zhang, Xumei & Liu, Can, 2014. "Coordinating a dual-channel supply chain with risk-averse under a two-way revenue sharing contract," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 171-179.
    10. Christoph H. Loch & Yaozhong Wu, 2008. "Social Preferences and Supply Chain Performance: An Experimental Study," Management Science, INFORMS, vol. 54(11), pages 1835-1849, November.
    11. Fernandes, Teresa & Calamote, Ana, 2016. "Unfairness in consumer services: Outcomes of differential treatment of new and existing clients," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 36-44.
    12. Sen, Amartya, 1995. "Rationality and Social Choice," American Economic Review, American Economic Association, vol. 85(1), pages 1-24, March.
    13. Liang Guo & Tian Li & Hongtao Zhang, 2014. "Strategic Information Sharing in Competing Channels," Production and Operations Management, Production and Operations Management Society, vol. 23(10), pages 1719-1731, October.
    14. Mingming Leng & Mahmut Parlar, 2009. "Allocation of Cost Savings in a Three-Level Supply Chain with Demand Information Sharing: A Cooperative-Game Approach," Operations Research, INFORMS, vol. 57(1), pages 200-213, February.
    15. Panda, Shibaji, 2014. "Coordination of a socially responsible supply chain using revenue sharing contract," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 92-104.
    16. Peng Ma & Kevin W. Li & Zhou-Jing Wang, 2017. "Pricing decisions in closed-loop supply chains with marketing effort and fairness concerns," International Journal of Production Research, Taylor & Francis Journals, vol. 55(22), pages 6710-6731, November.
    17. Du, Shaofu & Nie, Tengfei & Chu, Chengbin & Yu, Yugang, 2014. "Reciprocal supply chain with intention," European Journal of Operational Research, Elsevier, vol. 239(2), pages 389-402.
    18. Khan, Mehmood & Hussain, Matloub & Saber, Hussein M., 2016. "Information sharing in a sustainable supply chain," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 208-214.
    19. Samuelson, Paul A, 1993. "Altruism as a Problem Involving Group versus Individual Selection in Economics and Biology," American Economic Review, American Economic Association, vol. 83(2), pages 143-148, May.
    20. Fu, Yonghui & Piplani, Rajesh, 2004. "Supply-side collaboration and its value in supply chains," European Journal of Operational Research, Elsevier, vol. 152(1), pages 281-288, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sharifi, Rozhin & Razavi, Hamideh & Elahi, Ehsan, 2023. "Investigation of the ordering behavior of a retailer in the revenue sharing and buyback contracts considering round number bias," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    2. Ma, Peng, 2021. "Optimal generic and brand advertising efforts in a decentralized supply chain considering customer surplus," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    3. Shufan Zhu & Kefan Xie & Ping Gui, 2021. "Dynamic Adjustment Mechanism and Differential Game Model Construction of Mask Emergency Supply Chain Cooperation Based on COVID-19 Outbreak," Sustainability, MDPI, vol. 13(3), pages 1-24, January.
    4. Taleizadeh, Ata Allah & Tafakkori, Keivan & Thaichon, Park, 2021. "Resilience toward supply disruptions: A stochastic inventory control model with partial backordering under the base stock policy," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    5. Khorshidvand, Behrooz & Soleimani, Hamed & Sibdari, Soheil & Seyyed Esfahani, Mir Mehdi, 2021. "Revenue management in a multi-level multi-channel supply chain considering pricing, greening, and advertising decisions," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    6. Jiang, Yuqing & Liu, Fan & Lim, Andrew, 2021. "Digital coupon promotion and platform selection in the presence of delivery effort," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    7. Dehghan-Bonari, Mohamad & Heydari, Jafar, 2022. "How a novel option contract helps a green product to enter a traditional product's retailing channel: A mathematical modeling approach," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    8. Katsumata, Sotaro & Nishimoto, Akihiro & Kannan, P.K., 2023. "Brand competitiveness and resilience to exogenous shock: Usage of smartphone apps during the COVID-19 pandemic," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    9. Heydari, Jafar & Bineshpour, Pegah & Walther, Grit & Ülkü, M. Ali, 2022. "Reconciling conflict of interests in a green retailing channel with green sales effort," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    10. Yuan, Yanhong & Yang, Jinyao & Li, Yang & Li, Wei, 2020. "Necessary conditions for coordination of dual-channel closed-loop supply chain," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    11. Jose Albors-Garrigos & María Miguel Molina, 2023. "The servitization of innovation in the retail grocery sector: The case of Mercadona," Journal of International Entrepreneurship, Springer, vol. 21(2), pages 245-270, June.
    12. Meng, Lin & Lv, Wangyong & Yuan, George Xianzhi & Wang, Huiqi, 2023. "The dynamic risk profiles and management strategies in supply chain coopetition under altruistic preference," International Review of Financial Analysis, Elsevier, vol. 90(C).
    13. Zhang, Ranran & Ma, Weimin & Si, Hongyun & Liu, Jinjin & Liao, Le, 2021. "Cooperative game analysis of coordination mechanisms under fairness concerns of a green retailer," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).

    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. Zhang, Ranran & Ma, Weimin & Si, Hongyun & Liu, Jinjin & Liao, Le, 2021. "Cooperative game analysis of coordination mechanisms under fairness concerns of a green retailer," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    2. Yadong Shu & Ying Dai & Zujun Ma, 2019. "Pricing Decisions in Closed-Loop Supply Chains with Peer-Induced Fairness Concerns," Sustainability, MDPI, vol. 11(18), pages 1-19, September.
    3. Dong‐dong Wang & Kangzhou Wang, 2022. "Evolutionary game analysis of low‐carbon effort decisions in the supply chain considering fairness concerns," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1224-1239, July.
    4. Messinger, Paul R., 2016. "The role of fairness in competitive supply chain relationships: An experimental studyAuthor-Name: Choi, Sungchul," European Journal of Operational Research, Elsevier, vol. 251(3), pages 798-813.
    5. Wu, Jie & Xu, Guangcheng & Zhu, Qingyuan & Zhang, Chaochao, 2021. "Two-stage DEA models with fairness concern: Modelling and computational aspects," Omega, Elsevier, vol. 105(C).
    6. Chai Caichun & Zhu Hailong & Feng Zhangwei, 2018. "Evolutionary Stable Strategies for Supply Chains: Selfishness, Fairness, and Altruism," Journal of Systems Science and Information, De Gruyter, vol. 6(6), pages 532-551, December.
    7. Nie, Tengfei & Du, Shaofu, 2017. "Dual-fairness supply chain with quantity discount contracts," European Journal of Operational Research, Elsevier, vol. 258(2), pages 491-500.
    8. Đula, Ivan & Größler, Andreas, 2021. "Inequity aversion in dynamically complex supply chains," European Journal of Operational Research, Elsevier, vol. 291(1), pages 309-322.
    9. Zheng, Xiao-Xue & Li, Deng-Feng & Liu, Zhi & Jia, Fu & Sheu, Jiuh-Biing, 2019. "Coordinating a closed-loop supply chain with fairness concerns through variable-weighted Shapley values," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 227-253.
    10. Sarkar, Sumit, 2019. "Gratitude, conscience, and reciprocity: Models of supplier motivation when quality is non-contractible," European Journal of Operational Research, Elsevier, vol. 277(2), pages 633-642.
    11. Sarkar, Sumit & Bhala, Shrey, 2021. "Coordinating a closed loop supply chain with fairness concern by a constant wholesale price contract," European Journal of Operational Research, Elsevier, vol. 295(1), pages 140-156.
    12. Wang, Yuyan & Yu, Zhaoqing & Jin, Mingzhou & Mao, Jiafu, 2021. "Decisions and coordination of retailer-led low-carbon supply chain under altruistic preference," European Journal of Operational Research, Elsevier, vol. 293(3), pages 910-925.
    13. Zheng, Xiao-Xue & Liu, Zhi & Li, Kevin W. & Huang, Jun & Chen, Ji, 2019. "Cooperative game approaches to coordinating a three-echelon closed-loop supply chain with fairness concerns," International Journal of Production Economics, Elsevier, vol. 212(C), pages 92-110.
    14. Fuqiang Lu & Liying Wang & Hualing Bi & Zichao Du & Suxin Wang, 2021. "An Improved Revenue Distribution Model for Logistics Service Supply Chain Considering Fairness Preference," Sustainability, MDPI, vol. 13(12), pages 1-30, June.
    15. Gabriele Camera & Cary Deck & David Porter, 2020. "Do economic inequalities affect long-run cooperation and prosperity?," Experimental Economics, Springer;Economic Science Association, vol. 23(1), pages 53-83, March.
    16. Ni Du & Qinglan Han, 2018. "Pricing and Service Quality Guarantee Decisions in Logistics Service Supply Chain with Fairness Concern," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(05), pages 1-41, October.
    17. Sezer Ülkü & Chris Hydock & Shiliang Cui, 2022. "Social Queues (Cues): Impact of Others’ Waiting in Line on One’s Service Time," Management Science, INFORMS, vol. 68(11), pages 7958-7976, November.
    18. Ernst Fehr & Urs Fischbacher, "undated". "Why Social Preferences Matter - The Impact of Non-Selfish Motives on Competition," IEW - Working Papers 084, Institute for Empirical Research in Economics - University of Zurich.
    19. Yong Liu & Bing-ting Quan & Jiao Li & Jeffrey Yi-Lin Forrest, 2018. "A Supply Chain Coordination Mechanism with Cost Sharing of Corporate Social Responsibility," Sustainability, MDPI, vol. 10(4), pages 1-25, April.
    20. Ernan Haruvy & Elena Katok & Zhongwen Ma & Suresh Sethi, 2019. "Relationship-specific investment and hold-up problems in supply chains: theory and experiments," Business Research, Springer;German Academic Association for Business Research, vol. 12(1), pages 45-74, April.

    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:joreco:v:53:y:2020:i:c:s0969698919301936. 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: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    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.