Abstract
In today’s complex market competition environment, a high quality and high level of service plays a critical role in obtaining and maintaining long-term sustainable competitive advantage for enterprises and supply chains. Considering the service negative spillover effect, this paper investigates the horizontal Stackelberg competition and optimal service decision in two competing manufacturer-led supply chains. Four competitive structure models are constructed and the corresponding equilibrium solutions are obtained. By comparing the equilibrium results of four different structures, it is found that the service negative spillover effect and competition between supply chains have negative incentive effect on service providers and their supply chains. However, the chain-to-chain competition will benefit the supply chain that does not provide services from free-riding effect, which will be intensified with the intensification of competition. In addition, from the perspective of supply chain network and externality, we find that when the structure of one supply chain remains fixed and the other changes from centralized to decentralized, there will be a “double marginalization” effect. At the same time, the structural change from centralized to decentralized has certain “altruism”, that is, positive network externality, so as to improve the rival’s performance significantly.
Highlights
Nowadays, supply chain competition has become a research hotspot in the field of management
This section can be used as a benchmark to evaluate pricing and service decisions under pure decentralized and mixed cases to analyze the impact of different supply chain structure on the equilibrium results
In order to further analyze the influence of service negative spillover effect on the equilibrium solution under four competition structure of supply chains, the results shown in Table 2 are obtained at first
Summary
Supply chain competition has become a research hotspot in the field of management. There are bound to be differences in power or bargaining power in supply chain competition. For example, in vertical transactions between large manufacturers such as Apple, HP and small retailers, it is obvious that Apple and HP have more power or bargaining power compared with small retailers. In today’s complex and dynamic environment, the production and operation of a supply chain and its enterprises are often affected by external uncertain factors, such as facility interruption, demand interference and risk. In addition to the above three dimensions, many scholars have extended and developed the theoretical research content and framework of sustainability to operational and supply chain integration [7,8]. Some more specific secondary indicators are proposed, such as service, customer satisfaction, competition, supply chain profits, collaboration, external and internal relationship management, operational efficiency [9]
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