Channel selection and pricing strategy with supply chain finance and blockchain

Ciwei Dong, Qianzhi Huang and Debin Fang

International Journal of Production Economics, 2023, vol. 265, issue C

Abstract: Some emerge technologies (e.g., blockchain) and new business models (e.g., e-commerce platform) are utilized to promote the digitalization of supply chains. In this paper, we study the channel selection (direct channel/e-commerce platform) and pricing (wholesale pricing/agency pricing) strategies for a capital constrained supplier in the digital supply chain with the consideration of supply chain finance and blockchain. The supplier can sell through the direct channel or the e-commerce platform. When selling through the e-commerce platform, it can choose agency pricing or wholesale pricing mode, as well as whether to obtain financial supports through supply chain finance with blockchain technology. We show that the application of supply chain finance is not always beneficial for the supplier. The initial capital of the supplier plays an important role in channel selection. Besides, the adoption of blockchain technology can promote the development of supply chain finance. Regardless of wholesale pricing or agency pricing, the adoption of blockchain technology is always beneficial to suppliers. However, for the e-commerce platform, the adoption of blockchain technology can bring an increase in the interest and increase the profits of the e-commerce platform, only when the initial capital of the supplier is relatively low.

Keywords: Supply chain finance; Channel selection; Pricing; Blockchain; Digitalization (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:265:y:2023:i:c:s0925527323002384

DOI: 10.1016/j.ijpe.2023.109006

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