Technology Specifications and Production Timing in a Co‐Opetitive Supply Chain

By Baozhuang Niu, Kanglin Chen, Xin Fang, Xiaohang Yue, Xin Wang. Production and operations management, 2019

134 citations recorded by the source corpus.

Motivated by Google’s technology specifications on Android devices, we consider firms’ decisions on production timing in a co‐opetitive supply chain comprising a manufacturer and an original equipment manufacturer (OEM), where the manufacturer acts as the OEM’s upstream contract manufacturer and downstream competitor. We consider the market acceptance uncertainty of key product designs. If a firm decides to implement ex post production strategy (PS), it can delay the production until the market acceptance uncertainty of its product is resolved. Otherwise, ex‐ante production strategy (AS) is implemented. We find that, due to the co‐opetition, PS does not always benefit either the manufacturer or the OEM, because the value of delayed production is diminished as the competitor may commit a production quantity earlier under AS. Further, firms’ decisions on production timing are dependent on the degree of market acceptance uncertainty of their products and competition intensity. We find that both firms choose PS when uncertainty is high, while only one of them chooses PS when uncertainty is moderate or low. Interestingly, when the competition is intense, the manufacturer tends to choose PS, which can benefit from both the resolved market acceptance uncertainty and OEM’s early commitment of production quantity.

Subfields: Management Information Systems, Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/34215538ab51cba14e93991343d278289f64795f

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Management Information Systems

1. Bin Shen
2. Hong Zheng
3. Lin Tian
4. Ciwei Dong
5. Stefan Minner
6. Guo Li

In Marketing

1. Bin Shen
2. Hong Zheng
3. Lin Tian
4. Ciwei Dong
5. Stefan Minner
6. Guo Li

In Strategy and Management

1. Bin Shen
2. Lin Tian
3. Ciwei Dong
4. Stefan Minner

Citations in the corpus

• Information Sharing in an Online Marketplace with Co‐opetitive Sellers (2020, background): “Niu et al. (2019) consider firms’ decisions on production timing, ex ante production strategy and ex post production strategy.”
• Combating Copycats in the Supply Chain with Permissioned Blockchain Technology (2021, background): “New technologies, such as blockchain technology, are key drivers that change the business environment (Babich and Hilary 2020, Choi 2019, Guha and Kumar 2018, Hastig and Sodhi 2020, Niu et al. 2019, Whitaker and Kr¨aussl 2020).”
• Supplier Encroachment with a Dual‐Purpose Retailer (2021, unknown): “…decisions, such as downstream personalized pricing (Liu and Zhang 2006), collaborative advertising (Zhang et al. 2020), retailer information sharing (Huang et al. 2018), strategic inventories (Guan et al. 2019), quality disclosure (Guan et al. 2020), and production strategies (Niu et al. 2019).”