 When Value Co-creation Meets Supplier Encroachment. A Research Based on the Analytical ModelWeijia Kong, Simeng Wang, Yunfei Shao and Wei Yan SAGE Open, 2025, vol. 15, issue 1, 21582440251321356 Abstract: Retailers leverage service investment to enhance competitiveness and counter supplier encroachment. With the evolving relationship between enterprises and consumers, service-oriented value co-creation offers substantial competitive advantages. This paper develops a game-theoretical model to explore the interaction between value co-creation and supplier encroachment. The results show that value co-creation benefits both sides of implementers and serves as an effective strategy for the retailer to resist supplier encroachment. Furthermore, supplier encroachment incentivizes consumers to invest more in co-creation, while the retailer may reduce its own investment if the direct channel gains advantages. Under co-creation, supplier encroachment can benefit the manufacturer, consumers, and the entire supply chain, but Pareto improvement is only achieved when the co-creation environment is effective. This study contributes to the literature by providing a general framework for analyzing co-creation in dual-channel supply chains and expanding research on value co-creation, supplier encroachment, and dual-channel investment. Keywords: value co-creation; supplier encroachment; dual-channel supply chain investment; coopetition (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:15:y:2025:i:1:p:21582440251321356 DOI: 10.1177/21582440251321356 Access Statistics for this article More articles in SAGE Open |
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