Multi-channel retailer’s financing strategy in a green supply chain: Third-party platform credit financing versus bank credit financing
With the rapid development of third-party platforms, more and more retailers sell their green products on the third-party platform in addition to their offline channel. The additional demand generated from the third-party platform may impose greater capital pressure on the retailer. In response, som...
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| Format: | Article |
| Language: | English |
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KeAi Communications Co. Ltd.
2025-01-01
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| Series: | Sustainable Operations and Computers |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S266641272500008X |
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| author | Xueping Zhen Xinran Li Dan Shi Zixi Zhang |
| author_facet | Xueping Zhen Xinran Li Dan Shi Zixi Zhang |
| author_sort | Xueping Zhen |
| collection | DOAJ |
| description | With the rapid development of third-party platforms, more and more retailers sell their green products on the third-party platform in addition to their offline channel. The additional demand generated from the third-party platform may impose greater capital pressure on the retailer. In response, some third-party platforms offer financing service to capital-constrained retailers sell on them. Therefore, we establish a Stackelberg game-theoretic model where a manufacturer sells green products to a capital-constrained retailer which has an offline channel and a third-party platform channel. Two financing strategies are considered: bank credit financing (BF) and third-party platform credit financing (TF). The manufacturer as the leader first determines the wholesale price and the lender (bank or the third-party platform) then sets an interest rate. The retailer finally decides the retail price. Our theoretical analysis shows that for the manufacturer, retailer and third-party platform, TF strategy is better than BF strategy. That is, TF strategy is a win-win strategy. Specifically, under the TF strategy, the retail price or the interest rate are lower compared to the BF strategy, while the wholesale price under TF is higher. Additionally, our finding shows that the revenue sharing rate has no impact on the manufacturer’s wholesale price decision under TF strategy, whereas under the BF strategy, the wholesale price decreases as the revenue sharing rate increases. We also find that the retail price increases with the revenue sharing rate under BF, but decreases under TF strategy. |
| format | Article |
| id | doaj-art-66737770f8c64af49347fbab03cf56ad |
| institution | Kabale University |
| issn | 2666-4127 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | KeAi Communications Co. Ltd. |
| record_format | Article |
| series | Sustainable Operations and Computers |
| spelling | doaj-art-66737770f8c64af49347fbab03cf56ad2025-08-20T03:25:05ZengKeAi Communications Co. Ltd.Sustainable Operations and Computers2666-41272025-01-01615316910.1016/j.susoc.2025.05.001Multi-channel retailer’s financing strategy in a green supply chain: Third-party platform credit financing versus bank credit financingXueping Zhen0Xinran Li1Dan Shi2Zixi Zhang3Department of Management Science and Engineering, School of Economics and Management, Shanghai Maritime University, Shanghai, China, 201306Department of Management Science and Engineering, School of Economics and Management, Shanghai Maritime University, Shanghai, China, 201306Department of E-Commerce, School of Business, Dalian University of Technology, Panjin, China, 124221; Corresponding author.Department of E-Commerce, School of Business, Dalian University of Technology, Panjin, China, 124221With the rapid development of third-party platforms, more and more retailers sell their green products on the third-party platform in addition to their offline channel. The additional demand generated from the third-party platform may impose greater capital pressure on the retailer. In response, some third-party platforms offer financing service to capital-constrained retailers sell on them. Therefore, we establish a Stackelberg game-theoretic model where a manufacturer sells green products to a capital-constrained retailer which has an offline channel and a third-party platform channel. Two financing strategies are considered: bank credit financing (BF) and third-party platform credit financing (TF). The manufacturer as the leader first determines the wholesale price and the lender (bank or the third-party platform) then sets an interest rate. The retailer finally decides the retail price. Our theoretical analysis shows that for the manufacturer, retailer and third-party platform, TF strategy is better than BF strategy. That is, TF strategy is a win-win strategy. Specifically, under the TF strategy, the retail price or the interest rate are lower compared to the BF strategy, while the wholesale price under TF is higher. Additionally, our finding shows that the revenue sharing rate has no impact on the manufacturer’s wholesale price decision under TF strategy, whereas under the BF strategy, the wholesale price decreases as the revenue sharing rate increases. We also find that the retail price increases with the revenue sharing rate under BF, but decreases under TF strategy.http://www.sciencedirect.com/science/article/pii/S266641272500008XMulti-channel retailerThird-party platformCredit financingCapital constraint |
| spellingShingle | Xueping Zhen Xinran Li Dan Shi Zixi Zhang Multi-channel retailer’s financing strategy in a green supply chain: Third-party platform credit financing versus bank credit financing Sustainable Operations and Computers Multi-channel retailer Third-party platform Credit financing Capital constraint |
| title | Multi-channel retailer’s financing strategy in a green supply chain: Third-party platform credit financing versus bank credit financing |
| title_full | Multi-channel retailer’s financing strategy in a green supply chain: Third-party platform credit financing versus bank credit financing |
| title_fullStr | Multi-channel retailer’s financing strategy in a green supply chain: Third-party platform credit financing versus bank credit financing |
| title_full_unstemmed | Multi-channel retailer’s financing strategy in a green supply chain: Third-party platform credit financing versus bank credit financing |
| title_short | Multi-channel retailer’s financing strategy in a green supply chain: Third-party platform credit financing versus bank credit financing |
| title_sort | multi channel retailer s financing strategy in a green supply chain third party platform credit financing versus bank credit financing |
| topic | Multi-channel retailer Third-party platform Credit financing Capital constraint |
| url | http://www.sciencedirect.com/science/article/pii/S266641272500008X |
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