Platform Service Supply Chain Network Equilibrium Model with Data Empowerment

Yongtao Peng, Bohai Chen and Eleonora Veglianti
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Eleonora Veglianti: Lille Catholic University

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Abstract: With the rapid development of information and communication technology, data empowerment has become an important way for platform service supply chain (PSSC) members to obtain a competitive advantage. Based on the three-level PSSC network structure composed of service providers, platform operators, and demand markets, this paper assumes that platform operators empower service providers to improve service quality, and PSSC members invest in data security risk control. Then, using variational inequality and equilibrium theory, a supply chain network equilibrium model considering data empowerment is constructed, and the equilibrium conditions of the whole network are obtained. Based on numerical examples, this paper analyzes the impact of the sensitivity of the demand market to service quality, the relative importance of service providers' service quality improvement level, the data empowerment cost of PSSC members, and the data security risk control investment of PSSC members on the equilibrium state of the supply chain network. The results show the following: because the service quality is produced by the cooperation between service providers and platform operators, platform operators may have free-riding behavior and are only willing to invest a fixed data empowerment cost to ensure the essential service quality; data security risk control investment is an important factor affecting service sales; and when supply chain network members reduce data security risk control investment, consumers' willingness to pay for services will be reduced, resulting in a decline in the overall profit of the supply chain network.

Date: 2022-04-30
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Published in Sustainability, 2022, 14 (9), pp.5419. ⟨10.3390/su14095419⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04522090

DOI: 10.3390/su14095419

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