Publication Date

2018-06-21

Availability

Open access

Embargo Period

2018-06-21

Degree Type

Dissertation

Degree Name

Doctor of Philosophy (PHD)

Department

Management (Business)

Date of Defense

2018-06-13

First Committee Member

Xin Geng

Second Committee Member

Yadong Luo

Third Committee Member

Nan Yang

Fourth Committee Member

Haresh Gurnani

Abstract

The development of technology provides an opportunity for the upstream manufacturer (supplier) to adapt its traditional business model. For example, the manufacturer may use an online store as a direct selling channel to enter the downstream market, which originally belongs to the retailer (buyer). The change in consumers behavior by the technology may also influence the manufacturer’s business model redesign. For instance, consumers’ peer-to-peer product sharing may lead the manufacturer to build a product sharing platform. Nevertheless, change in business model presents new challenges to traditional manufacturers. Motivated by the need to make decisions in a new business environment, my dissertation addresses different issues for the manufacturer in each essay. The first essay studies the players’ incentives in learning the manufacturer’s direct selling cost. Our analysis shows that the manufacturer may prefer no information advantage over the retailer on its direct selling cost and the retailer may also prefer to have less information. Furthermore, even if the manufacturer and the retailer agree on the information sharing contract, the manufacturer may have no incentive to resolve the uncertainty on its direct selling cost, which indicates the bright side of uncertainty in the supply chain when the manufacturer has a direct selling channel. The second essay analyzes the interaction between a buyer and a supplier where the buyer may hold strategic inventory in expectation of the supplier’s future direct selling. Our results show that the supplier and the buyer can be better off at the same time when considering the players’ strategies together rather than only considering one player’s strategy. The third essay examines the viability of the platform-building strategy for a premium manufacturer who tries to incorporate the new peer-to-peer product sharing paradigm in its business model. We design the new platform and find the manufacturer can always be better off by launching a platform exclusively for its premium product.

Keywords

Asymmetric Information; Strategic Inventory; Sharing Economy; Supply Chain Management

Share

COinS