E-commerce platform canvassing and service upgrade in an ocean shipping supply chain

Abstract

This paper examines the strategic interactions between a traditional shipping (TS) company’s determination on canvassing through a non-traditional shipping (NS) company’s e-commerce platform and NS company’s service upgrade decision on its platform. Our results show that TS company’s platform canvassing and NS company’s service upgrade could achieve a win–win–win situation for two shipping companies and shippers. Further analysis reveals the existence of a Prisoner’s dilemma situation and possible ways to mitigate its adverse impacts. Additionally, we verify that TS company’s platform canvassing might enhance NS company’s service upgrade extent, which in turn raises the price and demand of TS company.