The role of control power allocation in service supply chains: Model analysis and empirical examination

Weihua Liu (First Author), Lujie Chen (Participant Author), Shuqing Wang (Participant Author)

    Research output: Contribution to journalJournal

    11 Citations (Web of Science)

    Abstract

    In complex and competitive business environment, there have been many examples of supply chain members fighting for power. Therefore, researchers have begun focusing on the impact of control power allocation on the supply chain. This paper examines the allocation of power in different service supply chain relationships, analyzing the impact of service level on optimal control power allocation and comparing the differences between the optimal power distribution in service supply chains and that of manufacturing supply chains. We adopt a mathematical model building method to discuss this issue, verifying the theoretical perspectives through empirical studies of China's largest state-owned logistics company, the China Railway Company, and the private ownership enterprise, Tianjin SND Logistics Company. We also develop a conceptual model of the influence of control power on the performance of service supply chains, based on the modeling and case analysis. The conceptual model shows several results: the control power allocation determines the dominant structure of the supply chain; the service provider's wholesale pricing strategy and the service integrator's sales price strategy present different outcomes under various dominant structures of the supply chain, which will greatly affect the performance of the corresponding supply chain; and the relationship between the supply chain dominant structure and the price can be adjusted by the service level.
    Original languageEnglish
    Pages (from-to)176-190
    JournalJournal of Purchasing and Supply Management
    Volume23
    Issue number3
    DOIs
    Publication statusPublished - 2017

    Corresponding author email

    lwhliu@tju.edu.cn

    Keywords

    • Case study
    • Conceptual model
    • Control power
    • Model analysis
    • Service level
    • Service supply chain

    Indexed by

    • ABDC-B
    • Scopus
    • SSCI

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