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An incentive scheme for true information providing in Supply Chains

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  • Feldmann, Martin
  • Müller, Stephanie

Abstract

This paper examines the problem of how to establish an incentive scheme to furnish reliable and truthful information in Supply Chains. In the current discussion information is typically assumed to be perfect and Supply Chain Partners are presumed to behave altruistically. In our judgement these assumptions are far from realistic. In consequence we assume that opportunistic behavior can emerge and will be accompanied by incomplete and falsified information. Presenting an incentive scheme, we illustrate how a tendency towards true information providing can be constituted in Supply Chains and will be endorsed in the long run. The most important result of this approach is that a substantial change in the information policy of Supply Chains is brought about and a higher level of quality is obtained.

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  • Feldmann, Martin & Müller, Stephanie, 2003. "An incentive scheme for true information providing in Supply Chains," Omega, Elsevier, vol. 31(2), pages 63-73, April.
    • Handle: RePEc:eee:jomega:v:31:y:2003:i:2:p:63-73
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    Cited by:

    1. Kyu Kim, Kyung & Yul Ryoo, Sung & Dug Jung, Myung, 2011. "Inter-organizational information systems visibility in buyer-supplier relationships: The case of telecommunication equipment component manufacturing industry," Omega, Elsevier, vol. 39(6), pages 667-676, December.
    2. Samir K. Srivastava, 2006. "Logistics and Supply Chain Practices in India," Vision, , vol. 10(3), pages 69-79, July.
    3. WeiMing Mou & Wing-Keung Wong & Michael McAleer, 2018. "Financial Credit Risk Evaluation Based on Core Enterprise Supply Chains," Sustainability, MDPI, vol. 10(10), pages 1-17, October.
    4. Roberto Chavez, 2014. "Customer integration, information quality and operational performance: A social capital view," Working Papers 57, Facultad de Economía y Empresa, Universidad Diego Portales.
    5. Seock-Jin Hong & Hossein Najmi, 2020. "The Relationships between Supply Chain Capability and Shareholder Value Using Financial Performance Indicators," Sustainability, MDPI, vol. 12(8), pages 1-16, April.
    6. Zahid Hussain & Ahmad Bin Jusoh & Muhammad Sarfraz & Khalil Ur Rehman Wahla, 2018. "Uncovering the Relationship of Supply Chain Management and Firm Performance: Evidence from Textile Sector of Pakistan," Information Management and Business Review, AMH International, vol. 10(2), pages 23-29.
    7. Wang, Deshen & Chen, Bintong & Chen, Jing, 2019. "Credit card fraud detection strategies with consumer incentives," Omega, Elsevier, vol. 88(C), pages 179-195.
    8. Wann Yih Wu & Phuoc Thien Nguyen, 2019. "The Antecedents Of Dynamic Service Innovation Capabilities: The Moderating Roles Of Market Dynamism And Market Orientation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(07), pages 1-30, October.
    9. Lang Zhang & Haiqing Hu & Dan Zhang, 2015. "A credit risk assessment model based on SVM for small and medium enterprises in supply chain finance," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 1(1), pages 1-21, December.
    10. Mou, W.M. & Wong, W.-K. & McAleer, M.J., 2018. "Financial Credit Risk and Core Enterprise Supply Chains," Econometric Institute Research Papers EI2018-27, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    11. K. T. Shibin & Rameshwar Dubey & Angappa Gunasekaran & Benjamin Hazen & David Roubaud & Shivam Gupta & Cyril Foropon, 2020. "Examining sustainable supply chain management of SMEs using resource based view and institutional theory," Annals of Operations Research, Springer, vol. 290(1), pages 301-326, July.
    12. Yang, Jie & Wang, Jinjun & Wong, Christina W.Y. & Lai, Kee-Hung, 2008. "Relational stability and alliance performance in supply chain," Omega, Elsevier, vol. 36(4), pages 600-608, August.
    13. Qu, Wen Guang & Yang, Zhiyong, 2015. "The effect of uncertainty avoidance and social trust on supply chain collaboration," Journal of Business Research, Elsevier, vol. 68(5), pages 911-918.
    14. Banerjee, Mohua & Mishra, Manit, 2017. "Retail supply chain management practices in India: A business intelligence perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 248-259.
    15. Wangungu J. & Robert Gichira, 2014. "Influence of Supply Chain Management Practices to Branding In Fast Moving Consumer Goods Industry in Kenya A Case Study of Thika Small and Medium Enterprises," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(9), pages 251-264, September.
    16. Li, Suhong & Ragu-Nathan, Bhanu & Ragu-Nathan, T.S. & Subba Rao, S., 2006. "The impact of supply chain management practices on competitive advantage and organizational performance," Omega, Elsevier, vol. 34(2), pages 107-124, April.
    17. Wu, Jianghua & Zhai, Xin & Huang, Zhimin, 2008. "Incentives for information sharing in duopoly with capacity constraints," Omega, Elsevier, vol. 36(6), pages 963-975, December.
    18. Sachin Modgil & Sanjay Sharma, 2017. "Information Systems, Supply Chain Management and Operational Performance: Tri-linkage—An Exploratory Study on Pharmaceutical Industry of India," Global Business Review, International Management Institute, vol. 18(3), pages 652-677, June.
    19. Stålhane, Magnus & Andersson, Henrik & Christiansen, Marielle & Fagerholt, Kjetil, 2014. "Vendor managed inventory in tramp shipping," Omega, Elsevier, vol. 47(C), pages 60-72.
    20. Changjoon Lee & Byoung-Chun Ha, 2021. "Interactional Justice, Informational Quality, and Sustainable Supply Chain Management: A Comparison of Domestic and Multinational Pharmaceutical Companies," Sustainability, MDPI, vol. 13(2), pages 1-16, January.
    21. Canavari, Maurizio & Centonze, Roberta & Spadoni, Roberta, 2006. "Traceability as Part of Competitive Strategy in the Fruit Supply Chain," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25639, International Association of Agricultural Economists.
    22. Efosa Abiodun Oshodin & Omorodion Omoregbe, 2021. "Supply Chain Management, Competitive Advantage And Organizational Performance In The Nigerian Manufacturing Sector," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 6(2), pages 57-68, September.
    23. Egri, Péter & Váncza, József, 2013. "A distributed coordination mechanism for supply networks with asymmetric information," European Journal of Operational Research, Elsevier, vol. 226(3), pages 452-460.
    24. Danese, Pamela, 2013. "Supplier integration and company performance: A configurational view," Omega, Elsevier, vol. 41(6), pages 1029-1041.

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