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http://hdl.handle.net/10397/89914
Title: | An investigation into direct selling : information flow and supply chain structure | Authors: | Hao, Z Jiang, L |
Issue Date: | Jun-2021 | Source: | Production and operations management, June 2021, v. 30, no. 6, p.1785-1803 | Abstract: | Amid the rapid development of technology, an increasing number of suppliers sell directly as well as through the retail channel, competing with retailers in the market with uncertain demand. Each firm has exclusive access to a signal useful in updating market forecast. The quality of the signal received exclusively by a supplier is low when it adheres to the retail channel but improves after it engages in direct selling. Firms communicate signals along two directions. Competing suppliers or retailers may exchange signals in between, while suppliers may acquire retailers’ signals with payments. A firm can voluntarily share its undisclosed signals—including its exclusive signal and the signals received from information flow—with other firms through vertical interactions as per the specified decision sequence. Firms rely on available signals to decide prices and quantities. Direct selling by suppliers produces structure and information effects. The structure effect arises as suppliers gain flexibility in balancing sales across channels. The information effect arises as suppliers receive exclusive signals of improved quality and initiate signal acquisition from retailers, influencing the availability and utilization of signals among firms in responsive decision making. Channel structure, competition intensity, and cost of direct sales are important factors affecting suppliers’ incentive for direct selling and the magnitude of the arising structure and information effects on firms’ profit performance. | Keywords: | Channel management Direct selling Information sharing |
Publisher: | Wiley-Blackwell | Journal: | Production and operations management | ISSN: | 1059-1478 | EISSN: | 1937-5956 | DOI: | 10.1111/poms.13343 | Rights: | © 2020 Production and Operations Management Society This is the peer reviewed version of the following article: Hao, Z. and Jiang, L. (2021), An Investigation into Direct Selling: Information Flow and Supply Chain Structure. Prod Oper Manag, 30: 1785-1803, which has been published in final form at https://doi.org/10.1111/poms.13343. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited. |
Appears in Collections: | Journal/Magazine Article |
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Hao_Investigation_Direct_Selling.pdf | Pre-Published version | 1.14 MB | Adobe PDF | View/Open |
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