JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE) ›› 2025, Vol. 60 ›› Issue (6): 114-127.doi: 10.6040/j.issn.1671-9352.0.2023.372

Previous Articles    

Software competition and service cooperation performance considering channel encroachment and pre-sales service quality affecting software sales

REN Tinghai1, LIU Kaixuan1, WANG Dafei1, ZENG Nengmin2   

  1. 1. Scholl of Business Administration, Guizhou University of Finance and Economics, Guizhou 550001, Guiyang, China;
    2. School of Economics and Management, Harbin Engineering University, Harbin 150001, Heilongjiang, China
  • Published:2025-06-20

Abstract: At present, many software developers not only sell software to users through downstream service providers, but also directly sell software and services to users. In this study, we build the models of "Authorization" and "Authorization+Direct Sales" respectively, and study the authorization sales and channel encroachment strategies of the developer, as well as the service quality investment and software sales strategies of the provider. Moreover, we analyze the impact of developers channel encroachment on the profits of supply chain members and the total supply chain profit. The conclusions show that:(1)in the "Authorization" mode, the decision of the developer will not affect the software sales pricing decision of the provider, but only affect the pre-sales service quality decision of the provider; in the "Authorization+Direct Sales" mode, the decision of the developer will affect the software sales pricing decision and pre-sales service quality decision of the provider; in addition, the channel encroachment of the developer can dampen the enthusiasm of the service provider and stimulate its enthusiasm.(2)Channel encroachment will cause the developers own software sales/authorized profit to decline, but it can increase the sales of software and extended warranty services(EWS)and improve the software developers EWS sales profit.(3)If the market size occupied by the developer is small, channel encroachment can improve the profit of the provider; however, if the developer occupies a large market and both parties conduct low-intensity software competition, channel encroachment will reduce the profit of the provider; in addition, when the developer occupies a large market, both parties carry out high-intensity software competition, and the developer has(loses)low-cost advantages, channel encroachment can reduce(improve)the profit of the provider.(4)If the market size occupied by the developer is small, channel encroachment can improve the total supply chain profit and also reduce the total supply chain profit; however, if the developer occupies a large market, channel encroachment will always reduce the total supply chain profit.

Key words: channel encroachment, IT supply chain, service decision, software competition

CLC Number: 

  • F253
[1] FENG Q, SHANTHIKUMAR J G. How research in production and operations management may evolve in the era of big data[J]. Production and Operations Management, 2018, 27(9):1670-1684.
[2] SINGHAL K, FENG Q, GANESHAN R, et al. Introduction to the special issue on perspectives on big data[J]. Production and Operations Management, 2018, 27(9):1639-1641.
[3] ALCACER J, CANTWELL J, PISCITELLO L. Internationalization in the information age: a new era for places, firms, and international business networks[J]. Journal of International Business Studies, 2016, 47(5):499-512.
[4] 任晓刚,方力. 数字经济与实体经济融合发展:驱动机理、制约因素与路径选择[J]. 人民论坛·学术前沿,2023(12):108-111. REN Xiaogang, FANG Li. Integrated development of digital economy and real economy: driving mechanism, constraints, and path selection[J]. Frontiers, 2023(12):108-111.
[5] 洪银兴,任保平. 数字经济与实体经济深度融合的内涵和途径[J]. 中国工业经济, 2023(2):5-16. HONG Yinxing, REN Baoping. Connotation and approach of deep integration of the digital economy and the real economy[J]. China Industrial Economics, 2023(2):5-16.
[6] 陈晓红,李杨扬,宋丽洁,等. 数字经济理论体系与研究展望[J]. 管理世界,2022,38(2):208-224. CHEN Xiaohong, LI Yangyang, YANG Lijie, et al. Theoretical framework and research prospect of digital economy[J]. Journal of Management World, 2022, 38(2):208-224.
[7] 任廷海,周茂森,曾能民. 软件服务供应链中软件开发商的授权销售与市场入侵策略[J]. 中国管理科学,2024,32(7):117-128. REN Tinghai, ZHOU Maosen, ZENG Nengmin. The authorized sales and market encroachment strategies of the software developer in software service supply chains[J]. Chinese Journal of Management Science, 2024, 32(7):117-128.
[8] DEY D, FAN M, ZHANG C L. Design and analysis of contracts for software outsourcing[J]. Information Systems Research, 2010, 21(1):93-114.
[9] HONG Y L, PAVLOU P A. On buyer selection of service providers in online outsourcing platforms for IT services[J]. Information SystemsResearch, 2017, 28(3):547-562.
[10] JAIN T, HAZRA J, EDWIN CHENG T C. IT outsourcing and vendor cost improvement strategies under asymmetric information[J]. Decision Sciences, 2021, 52(5):1109-1136.
[11] MANI D, BARUA A, WHINSTON A B. Outsourcing contracts and equity prices[J]. Information Systems Research, 2013, 24(4):1028-1049.
[12] 张旭梅,任廷海,周茂森,等. 不完全信息下多阶段移动应用产品与服务合作的可更新契约[J]. 中国管理科学,2018,26(2):126-141. ZHANG Xumei, REN Tinghai, ZHOU Maosen, et al. The contract revision of cooperation of multi-stage mobile application product and service under incomplete information[J]. Chinese Journal of Management Science, 2018, 26(2):126-141.
[13] 任廷海,张旭梅,但斌. 移动应用供应链中考虑质量与交付期约束的合作契约设计[J]. 系统管理学报,2021,30(1):101-118. REN Tinghai, ZHANG Xumei, DAN Bin. Design of cooperation contract in mobile application supply chain considering quality and delivery time constraint[J]. Journal of Systems & Management, 2021, 30(1):101-118.
[14] 任廷海, 张旭梅, 但斌. 交付期与质量约束的移动应用供应链产品交付策略与合作契约[J]. 计算机集成制造系统,2020,26(10):2799-2811. REN Tinghai, ZHANG Xumei, DAN Bin. Product delivery strategy and cooperation contract design of mobile application supply chain in presence of quality and delivery time constraints[J]. Computer Integrated Manufacturing Systems, 2020, 26(10):2799-2811.
[15] 任廷海,张旭梅,周茂森,等. 考虑交付质量和交付期约束的移动应用供应链决策与协调[J]. 系统工程理论与实践, 2019, 39(3):615-634. REN Tinghai, ZHANG Xumei, ZHOU Maosen, et al. Decision and coordination of mobile application supply chain considering under delivery quality and delivery time constraints[J]. Systems Engineering-Theory & Practice, 2019, 39(3):615-634.
[16] REN T H, WANG D F, ZENG N M, et al. Effects of fairness concerns on price and quality decisions in IT service supply chain[J]. Computers & Industrial Engineering, 2022, 168:108071.
[17] LI Z X, GILBERT S M, LAI G M. Supplier encroachment under asymmetric information[J]. Management Science, 2014, 60(2):449-462.
[18] HUANG S, GUAN X, CHEN Y J. Retailer information sharing with supplier encroachment[J]. Production and Operations Management, 2018, 27(6):1133-1147.
[19] 李进,刘格格,张海霞,等. 基于消费者绿色偏好和渠道竞争的制造商分散式入侵策略[J]. 中国管理科学,2024,32(7):281-290. LI Jin, LIU Gege, ZHANG Haixia, et al. Manufacturers decentralized encroachment strategy with consumer green preference and channel competition[J]. Chinese Journal of Management Science, 2024, 32(7):281-290.
[20] 郑本荣,杨超,杨珺,等. 产品再制造、渠道竞争和制造商渠道入侵[J]. 管理科学学报,2018,21(8):99-111. ZHENG Benrong, YANG Chao, YANG Jun, et al. Product remanufacturing,channel competition and manufacturer encroachment[J]. Journal of Management Science in China, 2018, 21(8):99-111.
[21] 张雪峰,李果. 开放引入还是放任不管:平台商应对制造商渠道入侵的策略研究[J]. 中国管理科学,2024,32(1):251-259. ZHANG Xuefeng, LI Guo. Opening-up or Laissez-Faire:research on strategies of retail platform to deal with manufacturer encroachment[J]. Chinese Journal of Mannagement Science, 2024, 32(1):251-259.
[22] 邵同,魏杰,常美静,等. 考虑传统零售商零售服务投资的制造商入侵策略研究[J]. 系统工程理论与实践,2022,42(12):3335-3348. SHAO Tong, WEI Jie, CHANG Meijing, et al. The study of manufacturers encroachment strategy considering the traditional retailers retail services investment[J]. Systems Engineering Theory & Practice, 2022, 42(12):3335-3348.
[23] 刘震,经有国,秦开大. 基于延保服务授权条件契约的制造商渠道入侵策略[J]. 管理工程学报,2022,36(4):186-195. LIU Zhen, JING Youguo, QIN Kaida. Manufacturer encroachment strategies based on extended warranty service authorization condition contract[J]. Journal of Industrial Engineering and Engineering Management, 2022, 36(4):186-195.
[24] 经有国,王海龙,任君玲,等. 基于直销/直租的制造商渠道入侵策略选择[J]. 管理工程学学报,2023,37(3):138-148. JING Youguo, WANG Hailong, REN Junling, et al. Manufacturers strategy selection of channel encroachment based on direct selling and direct renting[J]. Journal of Industrial Engineering/ Engineering Management, 2023, 37(3):138-148.
[25] BERNSTEIN F, FEDERGRUEN A. Coordination mechanisms for supply chains under price and service competition[J]. Manufacturing & Service Operations Management, 2007, 9(3):242-262.
[26] 肖旦,聂珊珊,周永务,等. 不同市场准入标准下基于服务竞争的零售商竞合策略选择[J]. 中国管理科学,2021,29(10):121-130. XIAO Dan, NIE Shanshan, ZHOU Yongwu, et al. Co-opetition strategy choices of retailers based on service competition under different market entry standards[J]. Chinese Journal of Management Science, 2021, 29(10):121-130.
[27] 肖旦,姬晓楠,罗颜,等. 基于服务竞争的远视零售商联合采购联盟的竞合博弈策略分析[J]. 中国管理科学,2024,32(7):270-280. XIAO Dan, JI Xiaonan, LUO Yan, et al. Co-opetition game analysis of joint purchasing coalitions of farsighted retailers based on service competition[J]. Chinese Journal of Management Science, 2024, 32(7):270-280.
[28] 范体军,郑琪,蔡路. 考虑权力结构及供应商竞争的生鲜供应链决策[J]. 管理科学学报,2022,25(1):23-38. FAN Tijun, ZHENG Qi, CAI Lu. Supply chain decisions for fresh products with competitive suppliers under different power structures[J]. Journal of Management Sciences in China, 2022, 25(1):23-38.
[29] 牛保庄,陈凌云,李启洋. 产品与物流服务双维竞争下品牌商的跨境包邮策略研究[J]. 系统工程理论与实践,2022,42(4):1013-1025. NIU Baozhuang, CHEN Lingyun, LI Qiyang. Brand-owners cross-border free-shipping decisions considering the two-dimensional competition of product and logistics service[J]. Systems Engineering-Theory & Practice, 2022, 42(4):1013-1025.
[30] GUAN Z L, ZHANG X M, ZHOU M S, et al. Demand information sharing in competing supply chains with manufacturer-provided service[J]. International Journal of Production Economics, 2020, 220:107450.
[31] 张华,顾新. 供应链竞争下制造商数字化转型的博弈均衡研究[J]. 中国管理科学,2024,32(6):163-172. ZHANG Hua, GU Xin. Equilibrium analysis of manufacturers digital transformation strategy under supply Chain competition[J]. Chinese Journal of Mannagement Science, 2024, 32(6):163-172.
[32] WANG Y L, WALLACE S W, SHEN B, et al. Service supply chain management: a review of operational models[J]. European Journal of Operational Research, 2015, 247(3):685-698.
[33] CHEN X, LI L, ZHOU M. Manufacturers pricing strategy for supply chain with warranty period-dependent demand[J]. Omega, 2012, 40(6):807-816.
[34] TSAY A A, AGRAWAL N. Channel dynamics under price and service competition[J]. Manufacturing & Service Operations Management, 2000, 2(4):372-391.
[35] CACHON G P, LARIVIERE M A. Capacity allocation using past sales: when to turn-and-earn[J]. Management Science, 1999, 45(5):685-703.
[36] LI K P, MALLIK S, CHHAJED D. Design of extended warranties in supply chains under additive demand[J]. Production and Operations Management, 2012, 21(4):730-746.
[37] REN T H, ZENG N M, WANG D F, et al. Authorization or encroachment: effects of channel encroachment on decisions and performance in software service supply chains[J]. International Journal of Production Economics, 2023, 257:108777.
[38] XIAO W Q, XU Y. The impact of royalty contract revision in a multistage strategic R&D alliance[J]. Management Science, 2012, 58(12):2251-2271.
[39] CHE Y K, GALE I. Optimal design of research contests[J]. American Economic Review, 2003, 93(3):646-671.
[40] XUE M S, ZHANG J X, ZHU G W. Quantity decision timing with spillover effect and asymmetric demand information[J]. Transportation Research Part E: Logistics and Transportation Review, 2020, 142:102048.
[41] LI X, LIU Q. Contract unobservability and downstream competition[J]. Manufacturing & Service Operations Management, 2021, 23(6):1468-1482.
[42] BOLANDIFAR E, KOUVELIS P, ZHANG F Q. Delegation vs. control in supply chain procurement under competition[J]. Production and Operations Management, 2016, 25(9):1528-1541.
[1] Xin-hua HE,Cai-yun YOU,Wen-fa HU. Supply chain coordination strategy of joint contract under the disruption increased demand [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2019, 54(5): 68-76.
[2] HE Xin-hua, WAN Fan, HU Wen-fa, ZHENG Ai-bing. Emergency supply scheduling optimization under stochastic simulation of complex risk variables [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2018, 53(5): 1-11.
[3] XIAO Di, JIN Wen-wen. Pricing strategy for supply chain considering horizontal competition under C2B mode [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2018, 53(5): 53-60.
[4] HE Xin-hua, HU Wen-fa, XU Chang-yan, CHEN Ji-hong. Collaborative transshipment strategy of service supply chain for emergencies based on stochastic and fuzzy simulation [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2016, 51(12): 67-77.
[5] HE Xin-hua, HU Wen-fa, XIAO Min. Coordination optional contract mechanism of service supply chain for emergencies [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2015, 50(11): 81-90.
[6] GUI Yun-miao, SHEN Jun, HU Hong-chun, LIU Zhao-qi. Research on model of stochastic inventory control under carbon emission trading mechanism [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2015, 50(09): 55-60.
[7] DONG Hai, ZHANG Chen. Design of sustainable and personalized supply chain network in the context of carbon neutrality [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2025, 60(6): 45-62.
[8] ZHANG Yu, ZHANG Shanmei, BAI Qingguo, QU Biao. Ordering strategy for loss-averse dual sourcing enterprises under carbon emission regulations [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2023, 58(5): 101-110.
Viewed
Full text


Abstract

Cited
  Shared   
  Discussed   
No Suggested Reading articles found!
Copyright 2018 © Editorial office of JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE)
Supported by Beijing Magtech Co.Ltd