SUPPLIER INNOVATION IN THE PRESENCE OF BUYER POWER

• 成果类型: Article
• 署名作者: Chen, Zhiqi
• 署名单位: Nanjing University; Carleton University
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12355
• 发表日期: 2019
• 页码: 329-353
• 关键词: countervailing-power; private labels; retailers; mergers

摘要

This article analyzes the impact of retailer buyer power on a supplier's incentive to conduct innovation, with a focus on the supplier's investment in product variety and quality improvement. The analysis shows that an increase in buyer power, manifested through either a weakening of the supplier's bargaining position or a strengthening of a large retailer's bargaining power, leads to greater product variety and higher quality if the elasticity of demand is not too large. Increased buyer power, manifested through a strengthening of a large retailer's bargaining position, stimulates the supplier to invest more in quality improvement.