The benefits of competitive upward channel decentralization / Yunchuan Liu in Management science, Vol. 57 N° 4 (Avril 2011)  

Public ISBD [article]  inManagement science > Vol. 57 N° 4 (Avril 2011) . - pp. 741-751 Titre : The benefits of competitive upward channel decentralization Type de document : texte imprimé Auteurs : Yunchuan Liu, Auteur ; Rajeev K. Tyagi, Auteur Année de publication : 2011 Article en page(s) : pp. 741-751 Note générale : Management Langues : Anglais (eng) Mots-clés : Upward channel decentralization Production outsourcing Product positioning Distribution Game theory Index. décimale : 658 Organisation des entreprises. Techniques du commerce Résumé : Upward channel decentralization occurs when firms choose to not manufacture products by themselves and procure products from upstream suppliers. Current voices from marketing scholars and practitioners have predominantly focused on the cost benefits when production is outsourced to lower-cost upstream suppliers. In this paper, we study the effects of upward channel decentralization where competing firms can outsource their production to upstream suppliers who do not have any advantages on production costs. We show how downstream firms can still benefit from upward channel decentralization provided their product positioning is endogenous. Thus, we provide a new theory on the strategic benefits of upward channel decentralization. We also use this framework to show a new benefit to manufacturers selling through downstream retailers rather than directly. We examine the implications of our theory for consumer and social welfare, and also draw managerial implications. DEWEY : 658 ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/cgi/content/abstract/57/4/741 [article] The benefits of competitive upward channel decentralization [texte imprimé] / Yunchuan Liu, Auteur ; Rajeev K. Tyagi, Auteur . - 2011 . - pp. 741-751. Management Langues : Anglais (eng) in Management science > Vol. 57 N° 4 (Avril 2011) . - pp. 741-751 Mots-clés : Upward channel decentralization Production outsourcing Product positioning Distribution Game theory Index. décimale : 658 Organisation des entreprises. Techniques du commerce Résumé : Upward channel decentralization occurs when firms choose to not manufacture products by themselves and procure products from upstream suppliers. Current voices from marketing scholars and practitioners have predominantly focused on the cost benefits when production is outsourced to lower-cost upstream suppliers. In this paper, we study the effects of upward channel decentralization where competing firms can outsource their production to upstream suppliers who do not have any advantages on production costs. We show how downstream firms can still benefit from upward channel decentralization provided their product positioning is endogenous. Thus, we provide a new theory on the strategic benefits of upward channel decentralization. We also use this framework to show a new benefit to manufacturers selling through downstream retailers rather than directly. We examine the implications of our theory for consumer and social welfare, and also draw managerial implications. DEWEY : 658 ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/cgi/content/abstract/57/4/741

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