Abstract
The development of Big Data technology initiates an emerging research question of whether and how to invest in Big Data business for supply chain members to establish sustainable competitive edge. The aim of our study was to assess investment in Big Data business and its sustainable effects on supply chain coordination. We considered a two-stage supply chain with one supplier and one retailer who may or may not invest in Big Data business. Five decision-making modes were proposed based on the investment portfolios. The impacts of Big Data business on the profit of the supply chain and its members were analyzed and it was confirmed that a coordination scheme could achieve supply chain coordination. The results indicated that when the Big Data cost met a certain threshold, the profit of the supply chain and its members would increase whether supply chain members choose to invest in Big Data business individually or jointly. A reasonable cost allocation of Big Data business between supply chain members was provided when both members invest in Big Data. In addition, after the members invested jointly, a revenue-sharing contract could be applied to perfectly coordinate the supply chain.
Highlights
In the era of Big Data, collected data has an increasingly indispensable role in many industries and businesses [1]
This paper focuses on supply chain coordination and the investment decision-making of Big Data businesses
A paper similar to ours is that of Liu and Yi [18], who study showed that, after the members of the supply chain jointly invest in the big data business, the revenue-sharing contract is used to coordinate the supply chain, so that the profit of the decentralized decision-making supply chain can reach the profit level of the centralized decision-making supply chain
Summary
In the era of Big Data, collected data has an increasingly indispensable role in many industries and businesses [1] They have more incentives to invest in collecting large amounts of data and extracting valuable information from them to gain various advantages [2]. Big Data technology changes the business and profit models of enterprises so they can gain competitive advantage through differentiation, which helps achieve rapid performance growth. Big Data brings many advantages, enterprises can incur huge costs through building infrastructure and management, which, due to budget shortages limits, many enterprises They can, choose to outsource their Big Data business to professional service providers, who use technology to provide valuable information.
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
