Optimal bank credit financing and cost-reducing knowledge for a supplier under different channel structures
This study examines a supply chain consisting of a capital-constrained supplier and a retailer. The supplier sells wholesale products to consumers through the retailer and may also sell directly to consumers via an online channel. Given that the supplier’s initial working capital may be insufficient...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-07-01
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| Series: | Journal of Innovation & Knowledge |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2444569X25000861 |
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| author | Jing Xia Yujie Xiao Ling Yao Chuanxin Xia |
| author_facet | Jing Xia Yujie Xiao Ling Yao Chuanxin Xia |
| author_sort | Jing Xia |
| collection | DOAJ |
| description | This study examines a supply chain consisting of a capital-constrained supplier and a retailer. The supplier sells wholesale products to consumers through the retailer and may also sell directly to consumers via an online channel. Given that the supplier’s initial working capital may be insufficient to cover production, investment, or online channel expenses, they have the option to borrow funds from a bank—a practice referred to as bank credit financing (BCF). We develop models with and without direct selling and BCF to analyze the supplier’s optimal decisions regarding cost-reducing investments and the BCF policy. Our findings indicate that, in the absence of direct selling, the supplier’s optimal BCF decision depends on its initial working capital and the investment cost factor. Notably, BCF can enable the supplier to shift from forgoing cost-reducing investments to actively engaging in them when the initial working capital falls within a certain range. Furthermore, under the direct selling model, the supplier’s optimal decision is influenced by a combination of factors, including its initial working capital, investment cost factor, and direct selling cost. |
| format | Article |
| id | doaj-art-e36486f84ee84f339f29fd119a65e715 |
| institution | OA Journals |
| issn | 2444-569X |
| language | English |
| publishDate | 2025-07-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Innovation & Knowledge |
| spelling | doaj-art-e36486f84ee84f339f29fd119a65e7152025-08-20T02:05:07ZengElsevierJournal of Innovation & Knowledge2444-569X2025-07-0110410074110.1016/j.jik.2025.100741Optimal bank credit financing and cost-reducing knowledge for a supplier under different channel structuresJing Xia0Yujie Xiao1Ling Yao2Chuanxin Xia3School of Management, Nanjing University of Posts and Telecommunications, Nanjing 210003, PR ChinaSchool of Marketing and Logistics Management, Nanjing University of Finance and Economics, Nanjing 210023, PR China; Corresponding author.Chinese Academy of International Trade and Economic Cooperation, Beijing 100710, PR ChinaChinese Academy of International Trade and Economic Cooperation, Beijing 100710, PR ChinaThis study examines a supply chain consisting of a capital-constrained supplier and a retailer. The supplier sells wholesale products to consumers through the retailer and may also sell directly to consumers via an online channel. Given that the supplier’s initial working capital may be insufficient to cover production, investment, or online channel expenses, they have the option to borrow funds from a bank—a practice referred to as bank credit financing (BCF). We develop models with and without direct selling and BCF to analyze the supplier’s optimal decisions regarding cost-reducing investments and the BCF policy. Our findings indicate that, in the absence of direct selling, the supplier’s optimal BCF decision depends on its initial working capital and the investment cost factor. Notably, BCF can enable the supplier to shift from forgoing cost-reducing investments to actively engaging in them when the initial working capital falls within a certain range. Furthermore, under the direct selling model, the supplier’s optimal decision is influenced by a combination of factors, including its initial working capital, investment cost factor, and direct selling cost.http://www.sciencedirect.com/science/article/pii/S2444569X25000861O32C72C78 |
| spellingShingle | Jing Xia Yujie Xiao Ling Yao Chuanxin Xia Optimal bank credit financing and cost-reducing knowledge for a supplier under different channel structures Journal of Innovation & Knowledge O32 C72 C78 |
| title | Optimal bank credit financing and cost-reducing knowledge for a supplier under different channel structures |
| title_full | Optimal bank credit financing and cost-reducing knowledge for a supplier under different channel structures |
| title_fullStr | Optimal bank credit financing and cost-reducing knowledge for a supplier under different channel structures |
| title_full_unstemmed | Optimal bank credit financing and cost-reducing knowledge for a supplier under different channel structures |
| title_short | Optimal bank credit financing and cost-reducing knowledge for a supplier under different channel structures |
| title_sort | optimal bank credit financing and cost reducing knowledge for a supplier under different channel structures |
| topic | O32 C72 C78 |
| url | http://www.sciencedirect.com/science/article/pii/S2444569X25000861 |
| work_keys_str_mv | AT jingxia optimalbankcreditfinancingandcostreducingknowledgeforasupplierunderdifferentchannelstructures AT yujiexiao optimalbankcreditfinancingandcostreducingknowledgeforasupplierunderdifferentchannelstructures AT lingyao optimalbankcreditfinancingandcostreducingknowledgeforasupplierunderdifferentchannelstructures AT chuanxinxia optimalbankcreditfinancingandcostreducingknowledgeforasupplierunderdifferentchannelstructures |