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

doi:10.1016/j.ijpe.2019.107553

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 Publication › Article › peer-review

70 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 language	English
Article number	107553
Number of pages	14
Journal	International Journal of Production Economics
Volume	224
DOIs	https://doi.org/10.1016/j.ijpe.2019.107553
Publication status	Published - Jun 2020
Externally published	Yes

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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10.1016/j.ijpe.2019.107553

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

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.",

keywords = "Co-opetition, E-commerce, Logistics sharing, Promised delivery time",

author = "Baozhuang Niu and Fengfeng Xie and Lei Chen and Xin Xu",

note = "Funding Information: The authors are grateful to the managing editor and three reviewers for their helpful comments. The first author's work was supported by NSFC Excellent Young Scientists Fund (No. 71822202 ), NSFC (No. 71571194 ), Chang Jiang Scholars Program (Niu Baozhuang 2017), GDUPS (Niu Baozhuang 2017). Fengfeng Xie is the co-first author. The corresponding author is Lei Chen. Appendix Funding Information: The authors are grateful to the managing editor and three reviewers for their helpful comments. The first author's work was supported by NSFC Excellent Young Scientists Fund (No. 71822202), NSFC (No. 71571194), Chang Jiang Scholars Program (Niu Baozhuang 2017), GDUPS (Niu Baozhuang 2017). Fengfeng Xie is the co-first author. The corresponding author is Lei Chen. Publisher Copyright: {\textcopyright} 2019",

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doi = "10.1016/j.ijpe.2019.107553",

language = "English",

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journal = "International Journal of Production Economics",

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AU - Niu, Baozhuang

AU - Xie, Fengfeng

AU - Chen, Lei

AU - Xu, Xin

N1 - Funding Information: The authors are grateful to the managing editor and three reviewers for their helpful comments. The first author's work was supported by NSFC Excellent Young Scientists Fund (No. 71822202 ), NSFC (No. 71571194 ), Chang Jiang Scholars Program (Niu Baozhuang 2017), GDUPS (Niu Baozhuang 2017). Fengfeng Xie is the co-first author. The corresponding author is Lei Chen. Appendix Funding Information: The authors are grateful to the managing editor and three reviewers for their helpful comments. The first author's work was supported by NSFC Excellent Young Scientists Fund (No. 71822202), NSFC (No. 71571194), Chang Jiang Scholars Program (Niu Baozhuang 2017), GDUPS (Niu Baozhuang 2017). Fengfeng Xie is the co-first author. The corresponding author is Lei Chen. Publisher Copyright: © 2019

PY - 2020/6

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N2 - 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.

AB - 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.

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

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Keywords

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