Title: Impact of introducing a direct channel on supply chain performance

Authors: Xuemei Su, Lifang Wu, Xiaohang Yue

Addresses: College of Business Administration, California State University Long Beach, 1250 Bellflower Blvd, Long Beach, CA 90840, USA. ' Williams College of Business, Xavier University, 3800 Victory Parkway, Cincinnati, OH 45207, USA. ' Sheldon B. Lubar School of Business, University of Wisconsin Milwaukee, 3202 N Maryland Ave., P.O. Box 742, Milwaukee, WI 53201, USA

Abstract: We construct a dual channel (direct and retailer-intermediated) supply chain model in this paper that captures key attributes of the relationship between a manufacturer and a retailer, and present thorough analysis to understand how different channel characteristics influence the supply chain equilibrium behaviours. Our analysis shows the specific conditions that each party is better off or worse off in a dual-channel system, and when channel conflicts exist, if they do, when they are solvable and when they are not. The managerial insights gained from this study can serve as practical guidelines for supply chain firms utilising the dual channel strategy.

Keywords: e-commerce; electronic commerce; dual channel distribution; decision making; SCM; supply chain management; direct channels; retailer-intermediated channels; manufacturers; retailing; equilibrium behaviours; channel conflicts; business performance; electronic business; e-business.

DOI: 10.1504/IJEB.2010.032090

International Journal of Electronic Business, 2010 Vol.8 No.2, pp.101 - 125

Published online: 09 Mar 2010 *

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