Agricultural E-commerce Supply Chain Decision-Making Considering Government Subsidies and Platform Social Responsibility

Fang Zhang () and Lina Cui ()
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Fang Zhang: Liaoning Technical University, College of Business Administration
Lina Cui: Liaoning Technical University, College of Business Administration

A chapter in Proceedings of the 2024 5th International Conference on Management Science and Engineering Management (ICMSEM 2024), 2024, pp 354-367 from Springer

Abstract: Abstract To mitigate the deterioration of agricultural products in e-commerce transactions, this study examines the factors of suppliers’ investment in brand development for agricultural products and the fulfillment of social responsibility by e-commerce platforms. It establishes a fundamental Stackelberg model for secondary agricultural product e-commerce supply chains and analyzes and compares changes in profits and social welfare for suppliers and e-commerce platforms under different scenarios. The objective is to determine optimal subsidy strategies and rates when the government does not provide subsidies, only subsidizes suppliers, or only subsidizes e-commerce platforms. The findings indicate that government subsidies have a positive impact on both supplier brand development investments and platform social responsibility levels. Government subsidies encourage suppliers to enhance their brand building efforts while guiding platforms towards higher levels of social responsibility. When government subsidies are provided, there is an initial increase followed by a decrease in social welfare as the subsidy rate varies; however, when subsidies are exclusively given to suppliers, there exists a unique maximum value that maximizes overall social welfare. Therefore, it is recommended that the optimal subsidy strategy involves subsidizing suppliers to improve their level of brand development for agricultural products.

Keywords: Government subsidy; Platform social responsibility; Agricultural products e-commerce supply chain (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-570-6_37

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