IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i9p5419-d806510.html
   My bibliography  Save this article

Platform Service Supply Chain Network Equilibrium Model with Data Empowerment

Author

Listed:
  • Yongtao Peng

    (School of Management, Jiangsu University, Zhenjiang 212013, China)

  • Bohai Chen

    (School of Management, Jiangsu University, Zhenjiang 212013, China)

  • Eleonora Veglianti

    (Faculty of Management, Economy and Sciences, University Catholic of Lille, 59800 Lille, France)

Abstract

With the rapid development of information and communication technology, data empowerment has become an important way for platform service supply chain (PSSC) members to obtain a competitive advantage. Based on the three-level PSSC network structure composed of service providers, platform operators, and demand markets, this paper assumes that platform operators empower service providers to improve service quality, and PSSC members invest in data security risk control. Then, using variational inequality and equilibrium theory, a supply chain network equilibrium model considering data empowerment is constructed, and the equilibrium conditions of the whole network are obtained. Based on numerical examples, this paper analyzes the impact of the sensitivity of the demand market to service quality, the relative importance of service providers’ service quality improvement level, the data empowerment cost of PSSC members, and the data security risk control investment of PSSC members on the equilibrium state of the supply chain network. The results show the following: because the service quality is produced by the cooperation between service providers and platform operators, platform operators may have free-riding behavior and are only willing to invest a fixed data empowerment cost to ensure the essential service quality; data security risk control investment is an important factor affecting service sales; and when supply chain network members reduce data security risk control investment, consumers’ willingness to pay for services will be reduced, resulting in a decline in the overall profit of the supply chain network.

Suggested Citation

  • Yongtao Peng & Bohai Chen & Eleonora Veglianti, 2022. "Platform Service Supply Chain Network Equilibrium Model with Data Empowerment," Sustainability, MDPI, vol. 14(9), pages 1-21, April.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:5419-:d:806510
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/9/5419/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/9/5419/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Liu, Weihua & Long, Shangsong & Xie, Dong & Liang, Yanjie & Wang, Jinkun, 2021. "How to govern the big data discriminatory pricing behavior in the platform service supply chain?An examination with a three-party evolutionary game model," International Journal of Production Economics, Elsevier, vol. 231(C).
    2. Nagurney, Anna & Saberi, Sara & Shukla, Shivani & Floden, Jonas, 2015. "Supply chain network competition in price and quality with multiple manufacturers and freight service providers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 248-267.
    3. Jiaru Bai & Kut C. So & Christopher S. Tang & Xiqun (Michael) Chen & Hai Wang, 2019. "Coordinating Supply and Demand on an On-Demand Service Platform with Impatient Customers," Manufacturing & Service Operations Management, INFORMS, vol. 21(3), pages 556-570, July.
    4. Liu, Weihua & Yan, Xiaoyu & Li, Xiang & Wei, Wanying, 2020. "The impacts of market size and data-driven marketing on the sales mode selection in an Internet platform based supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    5. Zhang, Guangming & Dai, Gengxin & Sun, Hao & Zhang, Guitao & Yang, Zhilin, 2020. "Equilibrium in supply chain network with competition and service level between channels considering consumers' channel preferences," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    6. Prentice, Catherine & Wang, Xuequn & Loureiro, Sandra Maria Correia, 2019. "The influence of brand experience and service quality on customer engagement," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 50-59.
    7. Weihua Liu & Xinran Shen & Di Wang, 2020. "The impacts of dual overconfidence behavior and demand updating on the decisions of port service supply chain: a real case study from China," Annals of Operations Research, Springer, vol. 291(1), pages 565-604, August.
    8. Dong, June & Zhang, Ding & Nagurney, Anna, 2004. "A supply chain network equilibrium model with random demands," European Journal of Operational Research, Elsevier, vol. 156(1), pages 194-212, July.
    9. Choi, Tsan-Ming & Feng, Lipan & Li, Rong, 2020. "Information disclosure structure in supply chains with rental service platforms in the blockchain technology era," International Journal of Production Economics, Elsevier, vol. 221(C).
    10. He, Peng & He, Yong & Tang, Xiaoying & Ma, Shigui & Xu, Henry, 2022. "Channel encroachment and logistics integration strategies in an e-commerce platform service supply chain," International Journal of Production Economics, Elsevier, vol. 244(C).
    11. Anna Nagurney & Patrizia Daniele & Shivani Shukla, 2017. "A supply chain network game theory model of cybersecurity investments with nonlinear budget constraints," Annals of Operations Research, Springer, vol. 248(1), pages 405-427, January.
    12. Boakye, Kwabena G. & Natesan, Prathiba & Prybutok, Victor R., 2020. "A correlated uniqueness model of service quality measurement among users of cloud-based service platforms," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    13. Qin, Wei & Sun, Yan-Ning & Zhuang, Zi-Long & Lu, Zhi-Yao & Zhou, Yao-Ming, 2021. "Multi-agent reinforcement learning-based dynamic task assignment for vehicles in urban transportation system," International Journal of Production Economics, Elsevier, vol. 240(C).
    14. Yuhua Zhang & Mengdie Hu, 2021. "Research on the Relationship between Data Empowerment and Service Innovation Capability of Logistics Platform Enterprise," Mathematical Problems in Engineering, Hindawi, vol. 2021, pages 1-11, May.
    15. Liu, Zugang & Wang, Jia, 2019. "Supply chain network equilibrium with strategic supplier investment: A real options perspective," International Journal of Production Economics, Elsevier, vol. 208(C), pages 184-198.
    16. Brett Massimino & John V. Gray & Yingchao Lan, 2018. "On the Inattention to Digital Confidentiality in Operations and Supply Chain Research," Production and Operations Management, Production and Operations Management Society, vol. 27(8), pages 1492-1515, August.
    17. Haixiang Wu & Bing Xu & Ding Zhang, 2019. "Closed-Loop Supply Chain Network Equilibrium Model with Subsidy on Green Supply Chain Technology Investment," Sustainability, MDPI, vol. 11(16), pages 1-26, August.
    18. Yongtao Peng & Dan Xu & Yaya Li & Kun Wang, 2020. "A Product Service Supply Chain Network Equilibrium Model considering Capacity Constraints," Mathematical Problems in Engineering, Hindawi, vol. 2020, pages 1-15, November.
    19. Mengdi Zhang & Yufang Fu & Zhiheng Zhao & Saurabh Pratap & George Q. Huang, 2019. "Game theoretic analysis of horizontal carrier coordination with revenue sharing in E-commerce logistics," International Journal of Production Research, Taylor & Francis Journals, vol. 57(5), pages 1524-1551, March.
    20. Anna Nagurney & Dong Li & Tilman Wolf & Sara Saberi, 2013. "A network economic game theory model of a service-oriented internet with choices and quality competition," Netnomics, Springer, vol. 14(1), pages 1-25, November.
    21. Lin, Yong & Chen, Anlan & Yin, Yanhai & Li, Qing & Zhu, Qiaoni & Luo, Jing, 2021. "A framework for sustainable management of the platform service supply chain: An empirical study of the logistics sector in China," International Journal of Production Economics, Elsevier, vol. 235(C).
    22. Zhou, Yan & Chan, Chi Kin & Wong, Kar Hung, 2018. "A multi-period supply chain network equilibrium model considering retailers’ uncertain demands and dynamic loss-averse behaviors," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 51-76.
    23. Joanna Ejdys & Aleksandra Gulc, 2020. "Trust in Courier Services and Its Antecedents as a Determinant of Perceived Service Quality and Future Intention to Use Courier Service," Sustainability, MDPI, vol. 12(21), pages 1-18, October.
    24. Nagurney, Anna & Dong, June & Zhang, Ding, 2002. "A supply chain network equilibrium model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(5), pages 281-303, September.
    25. Guillaume Roels & Uday S. Karmarkar & Scott Carr, 2010. "Contracting for Collaborative Services," Management Science, INFORMS, vol. 56(5), pages 849-863, May.
    26. Xiaofei Qian & Xinbao Liu & Jun Pei & Panos M. Pardalos, 2018. "A new game of information sharing and security investment between two allied firms," International Journal of Production Research, Taylor & Francis Journals, vol. 56(12), pages 4069-4086, June.
    27. Choi, Tsan-Ming & Guo, Shu & Liu, Na & Shi, Xiutian, 2020. "Optimal pricing in on-demand-service-platform-operations with hired agents and risk-sensitive customers in the blockchain era," European Journal of Operational Research, Elsevier, vol. 284(3), pages 1031-1042.
    28. Tsan‐Ming Choi & Stein W. Wallace & Yulan Wang, 2018. "Big Data Analytics in Operations Management," Production and Operations Management, Production and Operations Management Society, vol. 27(10), pages 1868-1883, October.
    29. Hossein Safari & Soheila Etezadi & Mohsen Moradi-Moghadam & Mohammad Reza Fathi, 2021. "Maturity evaluation of supply chain procedures by combining SCOR and PST models," International Journal of Process Management and Benchmarking, Inderscience Enterprises Ltd, vol. 11(5), pages 707-724.
    30. Anna Nagurney & Tilman Wolf, 2014. "A Cournot–Nash–Bertrand game theory model of a service-oriented Internet with price and quality competition among network transport providers," Computational Management Science, Springer, vol. 11(4), pages 475-502, October.
    31. Liu, Zugang & Wang, Jia, 2019. "Supply chain network equilibrium with strategic financial hedging using futures," European Journal of Operational Research, Elsevier, vol. 272(3), pages 962-978.
    32. Kim, Kibum & Baek, Chulwoo & Lee, Jeong-Dong, 2018. "Creative destruction of the sharing economy in action: The case of Uber," Transportation Research Part A: Policy and Practice, Elsevier, vol. 110(C), pages 118-127.
    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. Yongtao Peng & Hang Li, 2023. "A Rental Platform Service Supply Chain Network Equilibrium Model Considering Digital Detection Technology Investment and Big Data Marketing," Sustainability, MDPI, vol. 15(13), pages 1-19, June.

    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. Chan, Chi Kin & Zhou, Yan & Wong, Kar Hung, 2019. "An equilibrium model of the supply chain network under multi-attribute behaviors analysis," European Journal of Operational Research, Elsevier, vol. 275(2), pages 514-535.
    2. Suyuan Luo & Tsan-Ming Choi, 2024. "Great partners: how deep learning and blockchain help improve business operations together," Annals of Operations Research, Springer, vol. 339(1), pages 53-78, August.
    3. He, Shan & Dai, Ying & Ma, Zu-Jun, 2023. "To offer or not to offer? The optimal value-insured strategy for crowdsourced delivery platforms," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 173(C).
    4. Yan Zhou & Xue-Qi Liu & Kar-Hung Wong, 2021. "Remanufacturing Policies Options for a Closed-Loop Supply Chain Network," Sustainability, MDPI, vol. 13(12), pages 1-26, June.
    5. Xia, Liangjie & Li, Kang & Wang, Jun & Xia, Yi & Qin, Juanjuan, 2024. "Carbon emission reduction and precision marketing decisions of a platform supply chain," International Journal of Production Economics, Elsevier, vol. 268(C).
    6. 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).
    7. 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).
    8. 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).
    9. 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).
    10. Hu, Xiaowei & Li, Peng, 2022. "Relief and stimulus in a cross-sector multi-product scarce resource supply chain network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 168(C).
    11. Siqin, Tana & Choi, Tsan-Ming & Chung, Sai-Ho, 2022. "Optimal E-tailing channel structure and service contracting in the platform era," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 160(C).
    12. Zhou, Yan & Chan, Chi Kin & Wong, Kar Hung, 2018. "A multi-period supply chain network equilibrium model considering retailers’ uncertain demands and dynamic loss-averse behaviors," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 51-76.
    13. Caiquan Duan & Guoyi Xiu & Fengmin Yao, 2019. "Multi-Period E-Closed-Loop Supply Chain Network Considering Consumers’ Preference for Products and AI-Push," Sustainability, MDPI, vol. 11(17), pages 1-32, August.
    14. Caiquan Duan & Fengmin Yao & Zhongqiu Li & Hui Yu, 2022. "Multi‐period closed‐loop supply chain network equilibrium considering CSR investment and sharing mechanism," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1579-1595, July.
    15. Davies, Jennifer & Sharifi, Hossein & Lyons, Andrew & Forster, Rick & Elsayed, Omar Khaled Shokry Mohamed, 2024. "Non-fungible tokens: The missing ingredient for sustainable supply chains in the metaverse age?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 182(C).
    16. Nagurney, Anna & Saberi, Sara & Shukla, Shivani & Floden, Jonas, 2015. "Supply chain network competition in price and quality with multiple manufacturers and freight service providers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 248-267.
    17. Wang, Moran & Guo, Xiaolong & Wang, Shouyang, 2022. "Financial hedging in two-stage sustainable commodity supply chains," European Journal of Operational Research, Elsevier, vol. 303(2), pages 803-818.
    18. Yang, Yuxiang & Goodarzi, Shadi & Jabbarzadeh, Armin & Fahimnia, Behnam, 2022. "In-house production and outsourcing under different emissions reduction regulations: An equilibrium decision model for global supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
    19. Benioudakis, Myron & Zissis, Dimitris & Burnetas, Apostolos & Ioannou, George, 2023. "Service provision on an aggregator platform with time-sensitive customers: Pricing strategies and coordination," International Journal of Production Economics, Elsevier, vol. 257(C).
    20. Silaghi, Florina & Moraux, Franck, 2022. "Trade credit contracts: Design and regulation," European Journal of Operational Research, Elsevier, vol. 296(3), pages 980-992.

    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:gam:jsusta:v:14:y:2022:i:9:p:5419-:d:806510. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.