no. 4
Selection of financing strategies and business modes for a capital-constrained manufacturer
RAIRO. Operations Research, Tome 56 (2022) no. 4, pp. 3219-3244

E-commerce platforms adopt both reseller and agency business modes to achieve better performance, and also provide financing services for qualified manufacturers to alleviate their financial difficulties. This paper analyzes financing strategy (bank financing or platform financing) and business mode selection (reseller mode, agency mode or both of them) for a capital-constrained manufacturer. We find that no matter which business mode is adopted, the platform always provides lower interest rates than bank, which in turn makes retail prices lower. Meanwhile, the manufacturer and the platform can become more profitable under platform financing. In addition, compared with the manufacturer adopting bank financing, the manufacturer has different business mode preferences when adopting platform financing. We put forward business mode recommendations for the manufacturer under different financing strategies.

Reçu le :
Accepté le :
Première publication :
Publié le :
DOI : 10.1051/ro/2022128
Classification : 90B50, 91B24, 91B28
Keywords: E-commerce, finance, supply chain 
@article{RO_2022__56_4_3219_0,
     author = {Gao, Yi and Fang, Lei},
     title = {Selection of financing strategies and business modes for a capital-constrained manufacturer},
     journal = {RAIRO. Operations Research},
     pages = {3219--3244},
     year = {2022},
     publisher = {EDP-Sciences},
     volume = {56},
     number = {4},
     doi = {10.1051/ro/2022128},
     mrnumber = {4475690},
     zbl = {1501.90038},
     language = {en},
     url = {https://www.numdam.org/articles/10.1051/ro/2022128/}
}
TY  - JOUR
AU  - Gao, Yi
AU  - Fang, Lei
TI  - Selection of financing strategies and business modes for a capital-constrained manufacturer
JO  - RAIRO. Operations Research
PY  - 2022
SP  - 3219
EP  - 3244
VL  - 56
IS  - 4
PB  - EDP-Sciences
UR  - https://www.numdam.org/articles/10.1051/ro/2022128/
DO  - 10.1051/ro/2022128
LA  - en
ID  - RO_2022__56_4_3219_0
ER  - 
%0 Journal Article
%A Gao, Yi
%A Fang, Lei
%T Selection of financing strategies and business modes for a capital-constrained manufacturer
%J RAIRO. Operations Research
%D 2022
%P 3219-3244
%V 56
%N 4
%I EDP-Sciences
%U https://www.numdam.org/articles/10.1051/ro/2022128/
%R 10.1051/ro/2022128
%G en
%F RO_2022__56_4_3219_0
Gao, Yi; Fang, Lei. Selection of financing strategies and business modes for a capital-constrained manufacturer. RAIRO. Operations Research, Tome 56 (2022) no. 4, pp. 3219-3244. doi: 10.1051/ro/2022128

[1] V. Abhishek, K. Jerath and Z. J. Zhang, Agency selling or reselling? Channel structures in electronic retailing. Manage. Sci. 62 (2016) 2259–2280. | DOI

[2] K. Cao, X. Xu, Y. Bian and Y. Sun, Optimal trade-in strategy of business-to-consumer platform with dual-format retailing model. Omega 82 (2019) 181–192. | DOI

[3] X. Chen, A model of trade credit in a capital-constrained distribution channel. Int. J. Prod. Econ. 159 (2015) 347–357. | DOI

[4] X. Chen and G. Cai, Joint logistics and financial services by a 3PL firm. Eur. J. Oper. Res. 214 (2011) 579–587. | Zbl | DOI

[5] X. Chen, C. Liu and S. Li, The role of supply chain finance in improving the competitive advantage of online retailing enterprises. Electron. Commer. Res. Appl. 33 (2018) 100821. | DOI

[6] L. Dong, L. Ren and D. Zhang, Financing small and medium-size enterprises via retail platforms. SSRN Electron. J. (2018). DOI: . | DOI

[7] D. Gong, S. Liu, J. Liu and L. Ren, Who benefits from online financing? A sharing economy E-tailing platform perspective. Int. J. Prod. Econ. 222 (2020) 107490. | DOI

[8] A. Hagiu and J. Wright, Marketplace or reseller? Manage. Sci. 61 (2015) 184–203. | DOI

[9] S. Huang, Z. P. Fan and X. Wang, Optimal operational strategies of supply chain under financing service by a 3PL firm. Int. J. Prod. Res. 57 (2019) 3405–3420. | DOI

[10] J. Huang, W. Yang and Y. Tu, Financing mode decision in a supply chain with financial constraint. Int. J. Prod. Econ. 220 (2020) 107441. | DOI

[11] S. Huang, Z. P. Fan and N. Wang, Green subsidy modes and pricing strategy in a capital-constrained supply chain. Transp. Res. Part E Logist. Transp. Rev. 136 (2020) 101885. | DOI

[12] B. Jiang, K. Jerath and K. Srinivasan, Firm strategies in the “mid tail” of platform-based retailing. Mark. Sci. 30 (2011) 757–775. | DOI

[13] W. Jin, Q. Zhang and J. Luo, Non-collaborative and collaborative financing in a bilateral supply chain with capital constraints. Omega 88 (2019) 210–222. | DOI

[14] B. Jing, X. Chen and G. G. Cai, Equilibrium financing in a distribution channel with capital constraint. Prod. Oper. Manag. 21 (2012) 1090–1101. | DOI

[15] P. Kouvelis and W. Zhao, Financing the newsvendor: Supplier vs. bank, and the structure of optimal trade credit contracts. Oper. Res. 60 (2012) 566–580. | MR | Zbl | DOI

[16] P. Kouvelis and W. Zhao, Who should finance the supply chain? Impact of credit ratings on supply chain decisions. Manuf. Serv. Oper. Manag. 20 (2018) 19–35. | DOI

[17] B. Li, S. M. An and D. P. Song, Selection of financing strategies with a risk-averse supplier in a capital-constrained supply chain. Transp. Res. Part E Logist. Transp. Rev. 118 (2018) 163–183. | DOI

[18] Z. Li, S. Gilbert and G. Lai, Supplier encroachment under asymmetric information. SSRN Electron. J. (2012) 1–45.

[19] G. Liu, W. Zhao and X. Zhao, A new firm entry under capital constraint. SSRN Electron. J. (2019). DOI: . | DOI

[20] K. R. Lou and W. C. Wang, Optimal trade credit and order quantity when trade credit impacts on both demand rate and default risk. J. Oper. Res. Soc. 64 (2013) 1551–1556. | DOI

[21] Q. Lu, J. Gu and J. Huang, Supply chain finance with partial credit guarantee provided by a third-party or a supplier. Comput. Ind. Eng. 135 (2019) 440–455. | DOI

[22] B. Mantin, H. Krishnan and T. Dhar, The strategic role of third-party marketplaces in retailing. Prod. Oper. Manag. 23 (2014) 1937–1949. | DOI

[23] J. Mcandrews and I. Nakamura, Entry-deterring debt. J. Money Credit Banking 24 (1992) 98–110. | DOI

[24] K. Murali, M. K. Lim and N. C. Petruzzi, The effects of ecolabels and environmental regulation on green product development. Manuf. Serv. Oper. Manag. 21 (2019) 519–535. | DOI

[25] J. Qin, H. Fu, Z. Wang and L. Xia, Financing and carbon emission reduction strategies of capital-constrained manufacturers in E-commerce supply chains. Int. J. Prod. Econ. 241 (2021) 108271. | DOI

[26] R. Rajesh, Flexible business strategies to enhance resilience in manufacturing supply chains: an empirical study. J. Manuf. Syst. 60 (2021) 903–919. | DOI

[27] N. Sachin and R. Rajesh, An empirical study of supply chain sustainability with financial performances of Indian firms. Environ. Dev. Sustain. 24 (2022) 6577–6601. | DOI

[28] Y. Shen, Platform retailing with slotting allowance and revenue sharing. J. Oper. Res. Soc. 69 (2018) 1033–1045. | DOI

[29] R. Tang and L. Yang, Financing strategy in fresh product supply chains under e-commerce environment. Electron. Commer. Res. Appl. 39 (2020) 100911. | DOI

[30] L. Tian, A. J. Vakharia, Y. Tan and Y. Xu, Marketplace, reseller, or hybrid: strategic analysis of an emerging e-commerce model. Prod. Oper. Manag. 27 (2018) 1595–1610. | DOI

[31] T. I. Tunca and W. Zhu, Buyer intermediation in supplier finance. Manage. Sci. 64 (2018) 5631–5650. | DOI

[32] C. Wang, M. Leng and L. Liang, Choosing an online retail channel for a manufacturer: direct sales or consignment? Int. J. Prod. Econ. 195 (2018) 338–358. | DOI

[33] C. Wang, X. Fan and Z. Yin, Financing online retailers: bank vs. electronic business platform, equilibrium, and coordinating strategy. Eur. J. Oper. Res. 276 (2019) 343–356. | MR | Zbl | DOI

[34] Y. Wang, Z. Yu and M. Jin, E-commerce supply chains under capital constraints. Electron. Commer. Res. Appl. 35 (2019) 100851. | DOI

[35] J. Wei, J. Lu and J. Zhao, Interactions of competing manufacturers’ leader-follower relationship and sales format on online platforms. Eur. J. Oper. Res. 280 (2019) 508–522. | MR | Zbl | DOI

[36] Y. Xiao and J. Zhang, Preselling to a retailer with cash flow shortage on the manufacturer. Omega 80 (2018) 43–57. | DOI

[37] S. Xu, L. Fang and K. Govindan, Energy performance contracting in a supply chain with financially asymmetric manufacturers under carbon tax regulation for climate change mitigation. Omega 106 (2022) 102535. | DOI

[38] Q. Yan and F. Ye, Manufacturer’s channel selection in a capital-constrained supply chain under bargaining game. RAIRO: Oper. Res. 55 (2021) S2161–S2179. | MR | Zbl | Numdam | DOI

[39] N. Yan, B. Sun, H. Zhang and C. Liu, A partial credit guarantee contract in a capital-constrained supply chain: financing equilibrium and coordinating strategy. Int. J. Prod. Econ. 173 (2016) 122–133. | DOI

[40] Y. Yan, R. Zhao and Z. Liu, Strategic introduction of the marketplace channel under spillovers from online to offline sales. Eur. J. Oper. Res. 267 (2018) 65–77. | MR | Zbl | DOI

[41] N. Yan, Y. Liu, X. Xu and X. He, Strategic dual-channel pricing games with e-retailer finance. Eur. J. Oper. Res. 283 (2020) 138–151. | MR | Zbl | DOI

[42] N. Yan, Y. Zhang, X. Xu and Y. Gao, Online finance with dual channels and bidirectional free-riding effect. Int. J. Prod. Econ. 231 (2021) 107834. | DOI

[43] Y. Zennyo, Strategic contracting and hybrid use of agency and wholesale contracts in e-commerce platforms. Eur. J. Oper. Res. 281 (2020) 231–239. | MR | Zbl | DOI

[44] S. Zhang and J. Zhang, Agency selling or reselling: E-tailer information sharing with supplier offline entry. Eur. J. Oper. Res. 280 (2020) 134–151. | MR | Zbl | DOI

[45] C. Zhang, Y. Wang, Y. Liu and H. Wang, Coordination contracts for a dual-channel supply chain under capital constraints. J. Ind. Manag. Optim. 17 (2021) 1485–1504. | MR | Zbl | DOI

[46] Y. Zhao and R. Hou, Should a supplier engage in the marketplace? An equilibrium analysis in a hybrid-format supply chain. RAIRO: Oper. Res. 55 (2021) 2639–2655. | MR | Zbl | Numdam | DOI

[47] X. Zhen, D. Shi, Y. Li and C. Zhang, Manufacturer’s financing strategy in a dual-channel supply chain: third-party platform, bank, and retailer credit financing. Transp. Res. Part E Logist. Transp. Rev. 133 (2020) 101820. | DOI

[48] W. Zhuo, H. Yang, L. E. Céardenas-Barréon and H. Wan, Loss-averse supply chain decisions with a capital constrained retailer. J. Ind. Manag. Optim. 17 (2020) 711–732. | MR | Zbl | DOI

Cité par Sources :