Tianyu Yan, Weizhe Yang, Yanyan He and Qinglong Gou
This study aims to investigate the effect of the reference quality on the optimal production strategy of a component manufacturer (CM), which mainly concerns whether to sell its…
Abstract
Purpose
This study aims to investigate the effect of the reference quality on the optimal production strategy of a component manufacturer (CM), which mainly concerns whether to sell its high quality self-branded products and whether to supply critical components to a competitive original equipment manufacturer (OEM) who produces low quality products.
Design/methodology/approach
The study considers a supply chain comprising an OEM, a CM and a third-party component manufacturer (TCM), who produces components with uncertain quality. The OEM selects a supplier between the CM and the TCM to produce products. Anticipating the OEM’s supplier selection, the CM chooses among three alternative production strategies. For each alternative strategy of the CM, the authors derive the equilibrium solutions between the OEM and the CM with or without the reference quality effect. Then, the authors obtain the effect of the reference quality on the CM by comparing the CM’s optimal strategy between the two situations.
Findings
First, the reference quality has opposite effects on the CM’s production strategy depending on the competition results. A high reference quality effect motivates the CM to solely sell the self-branded products if the OEM can always enter the final product market when purchasing from the TCM, and to sell both self-branded products and components if the OEM cannot enter the market when using the TCM’s low quality components. Second, the reference quality effect motivates the OEM to accept a higher wholesale price from the CM. Third, the reference quality effect can make the CM benefit from a more stable TCM in competition.
Originality/value
This paper first considers the impact of the reference quality effect on the CM’s production strategy. By considering consumers’ behavior in a co-opetitive supply chain, this paper contributes to both literature and practice.
Details
Keywords
Qingqing Lu, Weizhe Yang, Chuiri Zhou and Ningning Wang
This study aims to investigate whether the contract manufacturer (CM) should take the first-mover advantage in the end-product without supplying core components to the original…
Abstract
Purpose
This study aims to investigate whether the contract manufacturer (CM) should take the first-mover advantage in the end-product without supplying core components to the original equipment manufacturer (OEM) immediately, or should fully squeeze the benefit of the learning effect through an amplified production quantity by letting the OEM enter the end-product market early.
Design/methodology/approach
The authors propose a two-period model for a supply chain consisting of a CM and an OEM where the CM has four alternative entry strategies concerning it competition to the OEM in the end-product market. For each strategy, the authors derive the equilibrium solutions of the two firms using a backward approach. Comparison leads to the CM’s final choices among the four strategies.
Findings
For both CM and OEM, the monopoly and the first-entry strategies will be dominated by either the post-entry or the simultaneous-entry strategy, and thus, their preferred strategy is chosen from the latter two. Regarding the two firms choices between the post- and simultaneous-entry strategy, the CM prefers the post-entry strategy when the OEMs brand premium is at a moderate level, whereas the OEM prefers the post-entry strategy when its brand premium is low, and the learning effect can amplify the interval for the CMs adopting the post-entry strategy as well as changes the interval for the OEMs preference related to the two strategies.
Originality/value
This paper is the first one to explore the optimal strategy for a CM to maximize its profit in a co-opetitive supply chain situation with a CM and an OEM. The authors believe that our paper contributes to both literature and the market.
Details
Keywords
This study aims to give a glimpse of the existing blockchain applications across industries and add to a complete knowledge of the blockchain’s properties.
Abstract
Purpose
This study aims to give a glimpse of the existing blockchain applications across industries and add to a complete knowledge of the blockchain’s properties.
Design/methodology/approach
Systematic literature review is used as the research strategy for this investigation and other aspects of the preferred reporting items for systematic reviews and meta-analyses framework have been incorporated to create a scholarly publications evaluation of the blockchain-based application in the financial arena and its future. The research looks at 86 studies published between 2018 and 2022.
Findings
There has been a steady but noticeable increase in the study of blockchain’s potential in many application domains over the past few of years. This rising tendency illustrates the newness and potential of blockchain technology, as well as the increasing attention from academics. According to the findings, blockchain is an appropriate solution for processing transactions using cryptocurrencies; nevertheless, it still has significant technical issues and limits that require to be exploring and solving before it can be considered a viable option. It is therefore, necessary to have a high level of reliability for payments and confidentiality, in addition to maintaining the anonymity of nodes, to stop assaults and efforts to disrupt transactions in the blockchain.
Practical implications
This study has several important theoretical and practical implications. First, it adds to the body of knowledge on blockchain and Fintech, focusing on the transaction side. While much blockchain research has focused on how the technology may affect strategic choices, this study has shed light on its potential from the perspective of financial reporting. Second, by highlighting the importance of the demand for the prompt identification of losses, this work adds to the body of knowledge on the factors that influence transaction frauds involving paper money. Additionally, by establishing the link between transparency and virtual transactions, the author backs up the asymmetric responses of investors to different investment possibilities. It looks at the evolution of financial technology (Fintech) and shows how it can be used to take the advantage of unique opportunities.
Originality/value
The study is different and novel from the previously published literature on this topic mainly because of its comprehensiveness, as it revolves around all industrial and commercial areas. The three main lines of research have been outlined, namely, classifying the many blockchain-based innovations that will alter the financial landscape in many industries; identifying whether these industries are a good fit for blockchain’s wealth creation potential; and directing researchers by outlining prospective study pathways.