TY - JOUR
T1 - The role of control power allocation in service supply chains
T2 - Model analysis and empirical examination
AU - Liu, Weihua
AU - Wang, Shuqing
AU - Chen, Lujie
N1 - Publisher Copyright:
© 2017 Elsevier Ltd
PY - 2017/6
Y1 - 2017/6
N2 - In complex and competitive business environment, there have been many examples of supply chain members fighting for power. Therefore, researchers have begun focusing on the impact of control power allocation on the supply chain. This paper examines the allocation of power in different service supply chain relationships, analyzing the impact of service level on optimal control power allocation and comparing the differences between the optimal power distribution in service supply chains and that of manufacturing supply chains. We adopt a mathematical model building method to discuss this issue, verifying the theoretical perspectives through empirical studies of China's largest state-owned logistics company, the China Railway Company, and the private ownership enterprise, Tianjin SND Logistics Company. We also develop a conceptual model of the influence of control power on the performance of service supply chains, based on the modeling and case analysis. The conceptual model shows several results: the control power allocation determines the dominant structure of the supply chain; the service provider's wholesale pricing strategy and the service integrator's sales price strategy present different outcomes under various dominant structures of the supply chain, which will greatly affect the performance of the corresponding supply chain; and the relationship between the supply chain dominant structure and the price can be adjusted by the service level.
AB - In complex and competitive business environment, there have been many examples of supply chain members fighting for power. Therefore, researchers have begun focusing on the impact of control power allocation on the supply chain. This paper examines the allocation of power in different service supply chain relationships, analyzing the impact of service level on optimal control power allocation and comparing the differences between the optimal power distribution in service supply chains and that of manufacturing supply chains. We adopt a mathematical model building method to discuss this issue, verifying the theoretical perspectives through empirical studies of China's largest state-owned logistics company, the China Railway Company, and the private ownership enterprise, Tianjin SND Logistics Company. We also develop a conceptual model of the influence of control power on the performance of service supply chains, based on the modeling and case analysis. The conceptual model shows several results: the control power allocation determines the dominant structure of the supply chain; the service provider's wholesale pricing strategy and the service integrator's sales price strategy present different outcomes under various dominant structures of the supply chain, which will greatly affect the performance of the corresponding supply chain; and the relationship between the supply chain dominant structure and the price can be adjusted by the service level.
KW - Conceptual model
KW - Control power;Service supply chain;Model analysis;Case study
KW - Service level
UR - http://www.scopus.com/inward/record.url?scp=85013130004&partnerID=8YFLogxK
U2 - 10.1016/j.pursup.2017.02.001
DO - 10.1016/j.pursup.2017.02.001
M3 - Article
AN - SCOPUS:85013130004
SN - 1478-4092
VL - 23
SP - 176
EP - 190
JO - Journal of Purchasing and Supply Management
JF - Journal of Purchasing and Supply Management
IS - 3
ER -