Service sharing,profit mode and coordination mechanism in the Online-to-Offline retail market |
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| Affiliation: | 1. Glorious Sun School of Business and Management, Donghua University, Shanghai, 200051, China;2. Institute of Logistics Science and Engineering, Shanghai Maritime University, Shanghai, 201306, China;3. College of Economics and Management, Shanghai Ocean University, Shanghai, 201306, China;1. Department of Management, Università Politecnica delle Marche, Ancona, Italy;2. Department of Economics and Social Science, Università Politecnica delle Marche, Ancona, Italy;1. University of South Australia, Australia;2. Faculty of Business and Economics, University of Melbourne, Australia;3. University of Mazandaran, Iran;4. Shahid Beheshti University, Iran;1. Department of Financial Engineering, Ajou University, Suwon, 16499, Republic of Korea;2. Department of Applied Mathematics & Institute of Natural Science, Kyung Hee University, Yongin, 17104, Republic of Korea;3. Department of Mathematical Sciences, Seoul National University, Seoul, 08826, Republic of Korea;1. Texas A&M University, Department of Finance, Mays Business School, College Station, TX, 77843, USA;2. University of Valladolid (Spain), NRU Higher School of Economics (Russia), School of Business and Economics, Avda. Valle Del Esgueva 6, 47011, Valladolid, Spain;3. University of Valladolid, School of Business and Economics, Avda. Valle Del Esgueva 6, 47011, Valladolid, Spain |
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| Abstract: | How does the sharing economy affect the retail industry? This study investigates the impact of service sharing on the decisions and profits of two profit modes in the Online-to-Offline (O2O) retail market. We find that service sharing always improves the profit of the brand supplier as a service demander in both two profit modes, and improves the profit of the offline franchisee as a service provider in the profit-sharing mode under certain circumstances, but always reduces its profit in the non-profit-sharing mode. This is associated with the double marginalisation effect of the non-profit-sharing mode which leads to channel conflicts. Thus, a service-cost sharing mechanism is introduced to coordinate conflicts and achieve a win-win strategy, thereby improving the performance of the entire O2O supply chain. |
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| Keywords: | O2O supply chain Profit-sharing mode Non-profit-sharing mode Service-cost sharing mechanism Pareto improvement C61 C72 L11 L14 L81 |
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