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A computational analysis of capital chain rupture in e-commerce enterprise

Author

Listed:
  • Yi Song

    (Huazhong University of Science and Technology)

  • Bin Hu

    (Huazhong University of Science and Technology)

  • Zhihan Lv

    (Qingdao University)

Abstract

E-commerce has rapidly developed in China. Despite a large number of emerging e-commerce enterprises, many of them withdraw from the market because of capital chain rupture. To expand the market share, enterprises usually reduce the price of a product or gain positive public opinion to enhance their influence on the market. However, improper methods may lead to capital chain rupture and disrupt the development of the enterprise. This thesis views one kind of product from e-commerce enterprise studies on the influence of promotional methods and stocking strategies on internal indexes such as cash flow and investor trust, as well as external indexes such as loyalty. The study then analyzes how these indexes affect the capital chain rupture of enterprises and determine the intrinsic mechanism underlying the promotional methods and stocking strategy. This study uses the multi-agent model and system dynamics to simulate the influence of internal and external indexes on a capital chain. The result is expected to provide suggestions for e-commerce enterprises.

Suggested Citation

  • Yi Song & Bin Hu & Zhihan Lv, 2018. "A computational analysis of capital chain rupture in e-commerce enterprise," Electronic Commerce Research, Springer, vol. 18(2), pages 257-276, June.
  • Handle: RePEc:spr:elcore:v:18:y:2018:i:2:d:10.1007_s10660-017-9278-3
    DOI: 10.1007/s10660-017-9278-3
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    References listed on IDEAS

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