IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v44y2023i2p733-752.html
   My bibliography  Save this article

Supplier encroachment and information transparency on fresh produce e‐commerce platform: Impacts on the traditional channel

Author

Listed:
  • Yu Tian
  • Bin Dan
  • Ting Lei
  • Molin Liu

Abstract

As fresh produce e‐commerce develops, some suppliers with traditional channels begin to encroach online through agency or reselling mode of the platform. This paper studies the supplier's entry mode choice and the platform's information sharing strategy and analyzes impacts on the traditional channel. It reveals that the platform may voluntarily share information. However, increasing commission fees may inhibit the sharing motivation. The supplier may choose entry with agency selling to induce information sharing even at high commission fees. Under equilibrium strategy, the traditional channel demand and the retailer's profit may increase, indicating that supplier encroachment may achieve all‐win situation.

Suggested Citation

  • Yu Tian & Bin Dan & Ting Lei & Molin Liu, 2023. "Supplier encroachment and information transparency on fresh produce e‐commerce platform: Impacts on the traditional channel," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 733-752, March.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:2:p:733-752
    DOI: 10.1002/mde.3709
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3709
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.3709?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
    ---><---

    References listed on IDEAS

    as
    1. Liang Guo & Ganesh Iyer, 2010. "Information Acquisition and Sharing in a Vertical Relationship," Marketing Science, INFORMS, vol. 29(3), pages 483-506, 05-06.
    2. Zennyo, Yusuke, 2020. "Strategic contracting and hybrid use of agency and wholesale contracts in e-commerce platforms," European Journal of Operational Research, Elsevier, vol. 281(1), pages 231-239.
    3. Cenying Yang & Yihao Feng & Andrew Whinston, 2022. "Dynamic Pricing and Information Disclosure for Fresh Produce: An Artificial Intelligence Approach," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 155-171, January.
    4. 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.
    5. Tiwari, Sunil & Jaggi, Chandra K. & Gupta, Mamta & Cárdenas-Barrón, Leopoldo Eduardo, 2018. "Optimal pricing and lot-sizing policy for supply chain system with deteriorating items under limited storage capacity," International Journal of Production Economics, Elsevier, vol. 200(C), pages 278-290.
    6. Song Huang & Shuting Chen & Lei Xiao, 2020. "Manufacturer product quality information disclosure with channel encroachment in the E‐commerce age," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(5), pages 744-761, July.
    7. Chongping Chen & Xiaopo Zhuo & Yanshan Li, 2022. "Online channel introduction under contract negotiation: Reselling versus agency selling," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(1), pages 146-158, January.
    8. Guan, Xu & Huang, Song & Chen, Ying-Ju, 2022. "Acquisition transparency and induced supplier encroachment," Omega, Elsevier, vol. 108(C).
    9. Andrei Hagiu & Julian Wright, 2015. "Marketplace or Reseller?," Management Science, INFORMS, vol. 61(1), pages 184-203, January.
    10. Song Huang & Xu Guan & Ying†Ju Chen, 2018. "Retailer Information Sharing with Supplier Encroachment," Production and Operations Management, Production and Operations Management Society, vol. 27(6), pages 1133-1147, June.
    11. Albert Y. Ha & Huajiang Luo & Weixin Shang, 2022. "Supplier Encroachment, Information Sharing, and Channel Structure in Online Retail Platforms," Production and Operations Management, Production and Operations Management Society, vol. 31(3), pages 1235-1251, March.
    12. Vibhanshu Abhishek & Kinshuk Jerath & Z. John Zhang, 2016. "Agency Selling or Reselling? Channel Structures in Electronic Retailing," Management Science, INFORMS, vol. 62(8), pages 2259-2280, August.
    13. Dixit, Avinash K & Stiglitz, Joseph E, 1993. "Monopolistic Competition and Optimum Product Diversity: Reply," American Economic Review, American Economic Association, vol. 83(1), pages 302-304, March.
    14. Anil Arya & Brian Mittendorf & David E. M. Sappington, 2007. "The Bright Side of Supplier Encroachment," Marketing Science, INFORMS, vol. 26(5), pages 651-659, 09-10.
    15. Zhang, Shichen & Wei, Liqun & Zhang, Jianxiong, 2022. "Demand forecast sharing for a dominant retailer with supplier encroachment and quality decisions," European Journal of Operational Research, Elsevier, vol. 301(1), pages 39-50.
    16. Zhang, Xiuyi & Hou, Wenhua, 2022. "The impacts of e-tailer's private label on the sales mode selection: From the perspectives of economic and environmental sustainability," European Journal of Operational Research, Elsevier, vol. 296(2), pages 601-614.
    17. Dye, Chung-Yuan, 2020. "Optimal joint dynamic pricing, advertising and inventory control model for perishable items with psychic stock effect," European Journal of Operational Research, Elsevier, vol. 283(2), pages 576-587.
    18. Lode Li, 2002. "Information Sharing in a Supply Chain with Horizontal Competition," Management Science, INFORMS, vol. 48(9), pages 1196-1212, September.
    19. Bingbing Liu & Xiaolong Guo & Yugang Yu & Lin Tian, 2021. "Manufacturer's contract choice facing competing downstream online retail platforms," International Journal of Production Research, Taylor & Francis Journals, vol. 59(10), pages 3017-3041, May.
    20. Albert Y. Ha & Shilu Tong, 2008. "Contracting and Information Sharing Under Supply Chain Competition," Management Science, INFORMS, vol. 54(4), pages 701-715, April.
    21. Jiahua Zhang & Lian Qi & Shilu Tong, 2021. "Dynamic Contract under Quick Response in a Supply Chain with Information Asymmetry," Production and Operations Management, Production and Operations Management Society, vol. 30(5), pages 1273-1289, May.
    22. Zheng, Hong & Li, Guo & Guan, Xu & Sethi, Suresh & Li, Yu, 2021. "Downstream information sharing and sales channel selection in a platform economy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
    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. Huang, Song & Chen, Yuqing, 2023. "Manufacturer encroachment with competing dual-purpose online retail platforms," Journal of Retailing and Consumer Services, Elsevier, vol. 73(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. Gong, Canran & Ignatius, Joshua & Song, Huaming & Chai, Junwu & Day, Steven James, 2024. "The Impact of Platform’s Information Sharing on Manufacturer Encroachment and Selling Format Decision," European Journal of Operational Research, Elsevier, vol. 317(1), pages 141-155.
    2. Albert Y. Ha & Huajiang Luo & Weixin Shang, 2022. "Supplier Encroachment, Information Sharing, and Channel Structure in Online Retail Platforms," Production and Operations Management, Production and Operations Management Society, vol. 31(3), pages 1235-1251, March.
    3. Matsui, Kenji, 2024. "Should competing suppliers with dual-channel supply chains adopt agency selling in an e-commerce platform?," European Journal of Operational Research, Elsevier, vol. 312(2), pages 587-604.
    4. Tian Li & Hongtao Zhang, 2023. "Gaining by ceding ‐ bounded wholesale pricing for information sharing in a supply chain," Production and Operations Management, Production and Operations Management Society, vol. 32(3), pages 829-843, March.
    5. Chen, Kebing & Liu, Jiawen & Huang, Ziyue & Wang, Shengbin, 2024. "Information sharing strategy and channel selection with substitutable products," International Journal of Production Economics, Elsevier, vol. 268(C).
    6. Guo Li & Lin Tian & Hong Zheng, 2021. "Information Sharing in an Online Marketplace with Co‐opetitive Sellers," Production and Operations Management, Production and Operations Management Society, vol. 30(10), pages 3713-3734, October.
    7. Liang, Lunhai & Ye, Fei, 2024. "Information transparency and business mode selection in online platforms under manufacturer competition," Journal of Business Research, Elsevier, vol. 170(C).
    8. Shi, Jia & Chu, Lap Keung & Luo, Huajiang, 2023. "Voluntary information disclosure of an e-commerce platform under reselling, marketplace, and hybrid selling," International Journal of Production Economics, Elsevier, vol. 265(C).
    9. Yushi Tsunoda & Yusuke Zennyo, 2021. "Platform Information Transparency and Effects on Third‐Party Suppliers and Offline Retailers," Production and Operations Management, Production and Operations Management Society, vol. 30(11), pages 4219-4235, November.
    10. Tong, Yang & Li, Lixu & Yang, Danqin & Jiang, Xia, 2023. "Impacts of online intermediary’s platform openness under asymmetric quality information," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 173(C).
    11. Bian, Yiwen & Wang, Hang & Yan, Shuai & Han, Xiaohua, 2024. "Platform channel strategy of selling format: Effect of asymmetric service information," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 185(C).
    12. Hu, Huaqing & Sun, Shuxiao & Zheng, Xiaona & Chen, Lihua & Huang, Tao, 2021. "Committed or contingent? The retailer’s information acquisition and sharing strategies when confronting manufacturer encroachment," International Journal of Production Economics, Elsevier, vol. 242(C).
    13. Zhong, Qinjia & Wang, Jianjun & Zou, Zongbao & Lai, Xiaofan, 2023. "The incentives for information sharing in online retail platforms," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 172(C).
    14. Zhang, Jian & Nault, Barrie R., 2023. "Information sharing in an MTO supply chain with upstream adjustments," European Journal of Operational Research, Elsevier, vol. 308(1), pages 97-112.
    15. Yong Zha & Quan Li & Tingliang Huang & Yugang Yu, 2023. "Strategic Information Sharing of Online Platforms as Resellers or Marketplaces," Marketing Science, INFORMS, vol. 42(4), pages 659-678, July.
    16. Li, Hengyu & Chen, Huangen & Chai, Junwu & Shi, Victor, 2023. "Private label sourcing for an e-tailer with agency selling and service provision," European Journal of Operational Research, Elsevier, vol. 305(1), pages 114-127.
    17. Xu, Hongyan & Liu, Xiaomin & Huang, He, 2023. "Information sharing and order allocation rule in dual-sourcing," Omega, Elsevier, vol. 114(C).
    18. Liu, He & Xu, Tianting & Jing, Shuai & Liu, Zhidong & Wang, Shouyang, 2023. "The interplay between logistics strategy and platform’s channel structure design in B2C platform market," European Journal of Operational Research, Elsevier, vol. 310(2), pages 812-833.
    19. Luo, Huajiang & Zhong, Ling & Nie, Jiajia, 2022. "Quality and distribution channel selection on a hybrid platform," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    20. Fu, Ke & Wang, Ce & Xu, Jiayan, 2022. "The impact of trade credit on information sharing in a supply chain," Omega, Elsevier, vol. 110(C).

    More about this item

    Statistics

    Access and download statistics

    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:wly:mgtdec:v:44:y:2023:i:2:p:733-752. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    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.