Join logistics sharing alliance or not? Incentive analysis of competing E-commerce firms with promised-delivery-time

Baozhuang Niu, Fengfeng Xie, Lei Chen, Xin Xu

Research output: Journal PublicationArticlepeer-review

69 Citations (Scopus)

Abstract

E-commerce firms such as JD.com have launched logistics sharing alliance (LSA) by providing logistics services to the society. However, should their rivals having logistics service disadvantages join the LSA? In this paper, we formulate competing e-commerce firms' incentives regarding logistics cooperation via LSA. Firm A (she) offers LSA. Firm B (he) may guarantee customers a promised delivery time (PDT), although he has logistics services disadvantages. Without PDT, we find that firm B's profit performance joining LSA will be hurt when the market competition intensity degree is either high or low. We characterize firm B's total sales and the allocation ratio because of firm A's logistics sharing to explain this interesting finding. In contrast, when firm B has PDT guarantee, we find that he will join LSA when the PDT cost is high and the competition intensity degree is low. That is, PDT increases firm B's incentives to join LSA when he faces mild competition from firm A.

Original languageEnglish
Article number107553
Number of pages14
JournalInternational Journal of Production Economics
Volume224
DOIs
Publication statusPublished - Jun 2020
Externally publishedYes

Keywords

  • Co-opetition
  • E-commerce
  • Logistics sharing
  • Promised delivery time

ASJC Scopus subject areas

  • General Business,Management and Accounting
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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