IDEAS home Printed from https://ideas.repec.org/a/spr/elcore/v18y2018i2d10.1007_s10660-017-9278-3.html

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
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10660-017-9278-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10660-017-9278-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Xuanming Su, 2007. "Intertemporal Pricing with Strategic Customer Behavior," Management Science, INFORMS, vol. 53(5), pages 726-741, May.
    2. Erica Plambeck & Qiong Wang, 2009. "Effects of E-Waste Regulation on New Product Introduction," Management Science, INFORMS, vol. 55(3), pages 333-347, March.
    3. Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, September.
    4. Xinxin Li & Bin Gu & Hongju Liu, 2013. "Price Dispersion and Loss-Leader Pricing: Evidence from the Online Book Industry," Management Science, INFORMS, vol. 59(6), pages 1290-1308, June.
    5. Jeffrey S. Stonebraker, 2013. "Product-Generation Transition Decision Making for Bayer's Hemophilia Drugs: Global Capacity Expansion Under Uncertainty with Supply-Demand Imbalances," Operations Research, INFORMS, vol. 61(5), pages 1119-1133, October.
    6. Beaver, Wh, 1966. "Financial Ratios As Predictors Of Failure - Reply," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 4, pages 123-127.
    7. Dou, Wenyu & Ghose, Sanjoy, 2006. "A dynamic nonlinear model of online retail competition using Cusp Catastrophe Theory," Journal of Business Research, Elsevier, vol. 59(7), pages 838-848, July.
    8. Beaver, Wh, 1966. "Financial Ratios As Predictors Of Failure," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 4, pages 71-111.
    9. James D. Dana, Jr. & Nicholas C. Petruzzi, 2001. "Note: The Newsvendor Model with Endogenous Demand," Management Science, INFORMS, vol. 47(11), pages 1488-1497, November.
    10. Noah Gans, 2002. "Customer Loyalty and Supplier Quality Competition," Management Science, INFORMS, vol. 48(2), pages 207-221, February.
    11. Michael R. Baye & John Morgan, 2009. "Brand and Price Advertising in Online Markets," Management Science, INFORMS, vol. 55(7), pages 1139-1151, July.
    12. Xuanming Su & Fuqiang Zhang, 2008. "Strategic Customer Behavior, Commitment, and Supply Chain Performance," Management Science, INFORMS, vol. 54(10), pages 1759-1773, October.
    13. George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69(3), pages 213-213.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yuwei Yan & Xiaomeng Ma & Yi Song & Ajay Kumar & Ruixian Yang, 2023. "Exploring the interaction and choice behavior of organization and individuals in the crowd logistics," Annals of Operations Research, Springer, vol. 320(2), pages 1021-1040, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gérard P. Cachon & Robert Swinney, 2009. "Purchasing, Pricing, and Quick Response in the Presence of Strategic Consumers," Management Science, INFORMS, vol. 55(3), pages 497-511, March.
    2. Li, Chunyu & Lou, Chenxin & Luo, Dan & Xing, Kai, 2021. "Chinese corporate distress prediction using LASSO: The role of earnings management," International Review of Financial Analysis, Elsevier, vol. 76(C).
    3. Pavol Durana & Lucia Michalkova & Andrej Privara & Josef Marousek & Milos Tumpach, 2021. "Does the life cycle affect earnings management and bankruptcy?," Oeconomia Copernicana, Institute of Economic Research, vol. 12(2), pages 425-461, June.
    4. Modina, Michele & Pietrovito, Filomena & Gallucci, Carmen & Formisano, Vincenzo, 2023. "Predicting SMEs’ default risk: Evidence from bank-firm relationship data," The Quarterly Review of Economics and Finance, Elsevier, vol. 89(C), pages 254-268.
    5. Enrico Supino & Nicola Piras, 2022. "Le performance dei modelli di credit scoring in contesti di forte instabilit? macroeconomica: il ruolo delle Reti Neurali Artificiali," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2022(2), pages 41-61.
    6. Saiful Anwar & A.M Hasan Ali, 2018. "ANNs-BASED Early Warning System for Indonesian Islamic Banks," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 20(3), pages 325-342, January.
    7. E. Fedorova A. & M. Chukhlantseva A. & D. Chekrizov V. & ЕЛЕНА Федорова АНАТОЛЬЕВНА & МАРИЯ Чухланцева АЛЕКСАНДРОВНА & ДМИТРИЙ Чекризов ВАСИЛЬЕВИЧ, 2017. "Нормативные значения коэффициентов финансовой устойчивости: особенности видов экономической деятельности // Normative Values of Financial Stability Ratios: Industry-Specific Features," Управленческие науки // Management Science, ФГОБУВО Финансовый университет при Правительстве Российской Федерации // Financial University under The Government of Russian Federation, vol. 7(2), pages 44-55.
    8. Eling, Martin & Jia, Ruo, 2018. "Business failure, efficiency, and volatility: Evidence from the European insurance industry," International Review of Financial Analysis, Elsevier, vol. 59(C), pages 58-76.
    9. Le, Hong Hanh & Viviani, Jean-Laurent, 2018. "Predicting bank failure: An improvement by implementing a machine-learning approach to classical financial ratios," Research in International Business and Finance, Elsevier, vol. 44(C), pages 16-25.
    10. Arati Kale & Devendra Kale & Sriram Villupuram, 2024. "Decomposition of risk for small size and low book-to-market stocks," Journal of Asset Management, Palgrave Macmillan, vol. 25(1), pages 96-112, February.
    11. Ahsan Habib & Mabel D' Costa & Hedy Jiaying Huang & Md. Borhan Uddin Bhuiyan & Li Sun, 2020. "Determinants and consequences of financial distress: review of the empirical literature," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(S1), pages 1023-1075, April.
    12. Buchetti, Bruno & Miquel-Flores, Ixart & Perdichizzi, Salvatore & Reghezza, Alessio & Lin, Luca X., 2024. "Loan guarantee and portfolio greening: evidence from European credit registers," Working Paper Series 2916, European Central Bank.
    13. Juraini Zainol Abidin & Nur Adiana Hiau Abdullah & Karren Lee-Hwei Khaw, 2020. "Predicting SMEs Failure: Logistic Regression vs Artificial Neural Network Models," Capital Markets Review, Malaysian Finance Association, vol. 28(2), pages 29-41.
    14. Nasim Nasirpour & Alireza Mazdaki & Esmail Enayati, 2016. "The Investigation and Comparison of the Performance of Heuristic Methods in the Prediction of the Type of Auditor’s Opinion in Firms Accepted in Tehran Stock Exchange," Asian Social Science, Canadian Center of Science and Education, vol. 12(6), pages 148-148, June.
    15. Noora Alzayed & Rasol Eskandari & Hassan Yazdifar, 2023. "Bank failure prediction: corporate governance and financial indicators," Review of Quantitative Finance and Accounting, Springer, vol. 61(2), pages 601-631, August.
    16. David Veganzones, 2022. "Corporate failure prediction using threshold‐based models," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 41(5), pages 956-979, August.
    17. Christian Lohmann & Steffen Möllenhoff & Thorsten Ohliger, 2023. "Nonlinear relationships in bankruptcy prediction and their effect on the profitability of bankruptcy prediction models," Journal of Business Economics, Springer, vol. 93(9), pages 1661-1690, November.
    18. Sanchita Saha & Gagari Chakrabarti, 2025. "Impact of stock exchange listing on financial stability of small and medium enterprises: evidence from BSE SME platform in India," Economics Bulletin, AccessEcon, vol. 45(2), pages 928-943.
    19. Hui Li & Ting Sun & Jinquan Zhang, 2024. "Prediction of corporate financial distress based on corporate social responsibility: New evidence from DANP, VWP and MEOWA weights methodologies," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(5), pages 4537-4565, December.
    20. Amin Jan & Maran Marimuthu & Muhammad Kashif Shad & Haseeb ur-Rehman & Muhammad Zahid & Ahmad Ali Jan, 2019. "Bankruptcy profile of the Islamic and conventional banks in Malaysia: a post-crisis period analysis," Economic Change and Restructuring, Springer, vol. 52(1), pages 67-87, February.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:elcore:v:18:y:2018:i:2:d:10.1007_s10660-017-9278-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.