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Coordination Mechanism of Dual-Channel Supply Chains Considering Retailer Innovation Inputs

Wensheng Yang (), Yinyuan Si (), Jinxing Zhang (), Sen Liu () and Andrea Appolloni ()
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Wensheng Yang: School of Economics and Management, Nanjing University of Science & Technology, Nanjing 210094, China
Yinyuan Si: School of Economics and Management, Nanjing University of Science & Technology, Nanjing 210094, China
Jinxing Zhang: School of Logistics, Yunnan University of Finance and Economics, Kunming 650221, China
Sen Liu: School of Logistics, Yunnan University of Finance and Economics, Kunming 650221, China
Andrea Appolloni: Department of Management and Law, University of Rome Tor Vergata, 00133 Rome, Italy

Sustainability, 2021, vol. 13, issue 2, 1-22

Abstract: In response to the online channels established by manufacturers, physical retailers are starting to offer innovative services, which will intensify conflicts between manufacturers and retailers. Considering that the conflict will affect the operation efficiency and sustainable development of the supply chain, the coordination mechanism of a dual-channel supply chain has been established. In this study, we construct the Stackelberg game model based on consumer utility theory to analyze the complex mechanism of retailers’ innovation input level affecting supply chain operation and design the double coordination mechanism. The results show that: (1) an optimal combination of wholesale prices, retail prices and innovation input levels can optimize the operational efficiency of the supply chain, (2) Noncooperation among channel members affects the retailer’s product pricing, decreases the market share of the physical channel and increases the market demand of manufacturers, (3) The dual coordination mechanism can alleviate channel conflicts, which can improve the operational efficiency of the supply chain. This study provides several insights on the theory of organizational coordination and sustainable development in conflicts of dual-channel supply chains.

Keywords: dual-channel supply chain; innovation inputs; spillover effects; supply chain coordination; operational efficiency; sustainable development (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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