Search results

In the context of the trade war in full swing, the global supply chain systems have experienced a serious shock and become very vulnerable. The purpose of this paper is to explore the intertwining effects between the export-supporting subsidy policy and the import-deterring tariff policy to develop better insights for trade policy-making under the intra-industry-trade (IIT) conflicts. The research results may provide the trade policy makers and international businesses with better insights in making rational trade policy and business decisions.

Two-stage game-/bargaining-theoretical models for the dual competing international supply chains with a unilateral/bilateral tariff imposing or subsidy implementing under six different scenarios of IIT conflict are developed, analyzed and compared. On this basis, the corresponding numerical analyses are conducted to assess the impact of the tariff and subsidy policies and derive the trade policy implications and business insights.

The research results indicate that: (1) the bilateral subsidy implementing from both governments is the best policy for all stakeholders in two countries, which would lead to the highest profits, social welfare and consumer surplus than those of the other scenarios; (2) the bilateral tariff imposing of both governments is the worst policy for all stakeholders in two countries, which would lead to the lowest profits, social welfare and consumer surplus than those of the other scenarios; (3) the fair trade scenario without tariff imposing and subsidy implementing turns out to be the second-best trade policy for the governments. Under the World Trade Organization rule and fair-trade principles, the bilateral subsidy policy is not allowed in most of the cases. Thus, adopting a fair-trade policy may be the most appropriate trade policy for two trading countries.

The modeling approach developed for this study is original and innovative due to the following characteristics. First, based on three trade policy alternatives – fair trade, tariff imposing and subsidy implementing – of two generic governments under IIT conflict, nine different combinations of three policy alternatives are defined. Second, excluding the symmetrical combinations, six IIT conflict scenarios under various tariff/subsidy policy pairs ranging from no conflict to high conflict are assumed for two dual competing international supply chains. Third, a novel two-stage game-/bargaining-theoretical modeling approach is applied to investigate the optimal/equilibrium decisions regarding pricing, ordering quantity and their critical economic outcomes for all possible trade policy scenarios. Fourth, this study lays down a research foundation for the future trade conflict study using a game-theoretical modeling approach.

The purpose of this paper is to learn more about logistics innovation processes and their implications for the focal organization as well as the supply chain, especially suppliers.

The empirical basis of the study is a longitudinal action research project that was triggered by the practical needs of new ways of handling material flows of a hospital. This approach made it possible to revisit theory on logistics innovation process.

Apart from the tangible benefits reported to the case hospital, five findings can be extracted from this study: the logistics innovation process model may include not just customers but also suppliers; logistics innovation in buyer‐supplier relations may serve as an alternative to outsourcing; logistics innovation processes are dynamic and may improve supplier partnerships; logistics innovations in the supply chain are as dependent on internal stakeholders as on external relationships; and logistics innovation process may start out as a dialectic, conflict ridden process and end up in a well‐ordered goal‐oriented teleological process.

In general, the study contributes to the knowledge base of innovation process in logistics that is still sparse although literature on innovation in many other disciplines is well‐developed. As this research is only one study highlighting a special context of a hospital, further studies on the dynamic logistics innovation processes and their implications for the relevant parties as well as the supply chain are needed. This study does not claim statistical generalizability of the findings but provides insight into complex organizational processes that, for example, surveys cannot.

The findings of the study have provided valuable insights into the process of a logistics innovation in an oriental healthcare supply chain context. The study is, however, still limited in disclosing end‐to‐end supply chain benefits including concrete performance improvements at the suppliers. Examining logistics innovation processes should result not only in the implementation of innovative processes, but also in improved supplier relations leading to improved financial results in the supply chain.

The paper adds to the knowledge of the dynamic processes of logistics innovation both downstream and upstream in a supply chain. It elaborates on an existing model by methodological triangulation in order to learn more about the qualities of actual processes and their implications for theory and practice.