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Should the assembly system with direct omnichannel introduce integrated management service? A game-theoretical modelling study

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  • Zhisong Chen

    (Nanjing Normal University
    New York University)

  • Jianhui Peng

    (Shanghai Normal University)

Abstract

Against the background of omnichannel retailing, this paper tries to explore the incentive conditions/regions of adopting integrated management service (IMS) and the operational strategies/performance for the assembly system with direct omnichannel (AS). Six different game-theoretical decision models, including a centralized, two decentralized and a coordination decision modelssss for the AS, and a centralized and a coordination decision models for the assembly system with direct omnichannel and IMS (ASI), are developed, analyzed and compared, respectively. Based on an electronic product case, the corresponding numerical and sensitivity analyses are conducted. On this basis, the analytical and numerical results are compared and validated to derive managerial insights. It is found that only when the dual incentive ratio indicators are in the quadrant $$\{ \alpha \ge 1$$ { α ≥ 1 and $$\beta \ge 1\}$$ β ≥ 1 } of bidimensional incentive region matrix would the AS and IMS provider have the incentive to introduce and provide IMS. Introducing and providing IMS can effectively enhance the ability of quick response, boost the collaborative operations, and improve the operational performance of the AS. Furthermore, a revenue sharing contract-based coordination strategy can effectively improve the operational performance of ASI.

Suggested Citation

  • Zhisong Chen & Jianhui Peng, 2022. "Should the assembly system with direct omnichannel introduce integrated management service? A game-theoretical modelling study," Electronic Commerce Research, Springer, vol. 22(4), pages 1307-1350, December.
    • Handle: RePEc:spr:elcore:v:22:y:2022:i:4:d:10.1007_s10660-020-09450-z
    DOI: 10.1007/s10660-020-09450-z
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    Cited by:

    1. Pei-Ju Wu, 2023. "O2O switching determinants and successful drivers in omnichannel retailing services," Service Business, Springer;Pan-Pacific Business Association, vol. 17(3), pages 771-788, September.

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