The effect of bidimensional power structure on supply chain decisions and performance

Xu Chen; Xiaojun Wang; Ke Gong

doi:10.1109/TSMC.2017.2704445

The effect of bidimensional power structure on supply chain decisions and performance

Xu Chen, Xiaojun Wang, Ke Gong

Management

Research output: Contribution to journal › Article › peer-review

11 Citations (Scopus)

Abstract

Operational decisions made by manufacturers and retailers are often affected by the power relationships of both vertical and horizontal competitions in a supply chain. Although many studies have been carried to assess how the power structure impacts supply chains, most of them only focus on the power dynamics in the vertical competition or horizontal competition. This paper systematically examines the impacts of bidimensional power structure on a supply chain. Considering a triadic setting that is made of two rival retailers and a common manufacturer, we compare the equilibriums for the supply chain and individual firms with five different possible power structures. The analysis results show that the bidimensional power dynamics have a significant impact. Furthermore, the impacts of the bidimensional power structure are also dependent on the nature of customer demand. This paper provides important management implications that are supportive for companies to make strategic and operational decisions.

Original language	English
Article number	7937929
Pages (from-to)	1095-1110
Number of pages	16
Journal	IEEE Transactions on Systems, Man, and Cybernetics: Systems
Volume	50
Issue number	3
DOIs	https://doi.org/10.1109/TSMC.2017.2704445
Publication status	Published - Mar 2020

Bibliographical note

Funding Information:
Manuscript received January 16, 2017; revised April 3, 2017; accepted May 9, 2017. Date of publication June 1, 2017; date of current version February 19, 2020. This work was supported by the National Natural Science Foundation of China under Grant 71272128, Grant 71432003, and Grant 91646109. This paper was recommended by Associate Editor T.-M. Choi. (Corresponding author: Xu Chen.) X. Chen and K. Gong are with the School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China (e-mail: [email protected]).

Publisher Copyright:
© 2013 IEEE.

Keywords

Game theory
marketing-operations interface
power structure
supply chain management
vertical and horizontal competition

ASJC Scopus subject areas

Software
Control and Systems Engineering
Human-Computer Interaction
Computer Science Applications
Electrical and Electronic Engineering

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10.1109/TSMC.2017.2704445

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abstract = "Operational decisions made by manufacturers and retailers are often affected by the power relationships of both vertical and horizontal competitions in a supply chain. Although many studies have been carried to assess how the power structure impacts supply chains, most of them only focus on the power dynamics in the vertical competition or horizontal competition. This paper systematically examines the impacts of bidimensional power structure on a supply chain. Considering a triadic setting that is made of two rival retailers and a common manufacturer, we compare the equilibriums for the supply chain and individual firms with five different possible power structures. The analysis results show that the bidimensional power dynamics have a significant impact. Furthermore, the impacts of the bidimensional power structure are also dependent on the nature of customer demand. This paper provides important management implications that are supportive for companies to make strategic and operational decisions.",

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The effect of bidimensional power structure on supply chain decisions and performance

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

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