Supplier Capacity and Intermediary Profits: Can Less Be More?

• 成果类型: Article
• 署名作者: Adida, Elodie; Bakshi, Nitin; DeMiguel, Victor
• 署名单位: University of California System; University of California Riverside; University of London; London Business School
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1111/poms.12429
• 发表日期: 2016
• 页码: 630-646
• 关键词: Intermediation; supply chain; vertical and horizontal competition; Stackelberg leader

摘要

We identify market conditions under which intermediaries can thrive in retailer-driven supply chains. Our main finding is that, as a consequence of the retailers' leadership position, intermediaries prefer products for which the supply base (existing production capacity) is neither too narrow nor too broad; that is, less existing capacity can result in more intermediary profit. We also show that our main finding is robust to (i) the presence of horizontal competition among retailers and intermediaries, (ii) the existence of exclusive suppliers, and (iii) the ability of the retailers to source directly from the suppliers. Nevertheless, we find that horizontal competition between intermediaries encourages them to carry products with relatively smaller production capacity, whereas exclusive suppliers and direct sourcing encourage intermediaries to carry products with relatively larger installed capacity.