Abstract

The post-covid increasing demand for regional agri-products and growing e-agribusiness have created a need to enhance third party logistics (3PL) firms’ global cold-chain service facilities. Prime 3PL firms seek to increase profitability by outsourcing their technology innovation to research and developments (RND) institutes. This study presents an equity finance model for efficient technology innovation outsourcing. The result shows that outsourcing is favorable to the 3PL firm only if the ratio of the 3PL firm's initial capital to the technology RND team's efficiency is sufficiently high. The study further shows that investment in regional agri-supply chain (RASC) is favorable to 3PL firms if the post-harvesting loss rate is sufficiently low.

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