The benefits of competitive upward channel decentralization

Management Science

Volumn 57, Issue 4, 2011, Pages 741-751

  Liu, Yunchuan ^a   Tyagi, Rajeev K ^b  

^a UNIVERSITY OF ILLINOIS AT URBANA CHAMPAIGN   (United States)

^b UNIVERSITY OF CALIFORNIA   (United States)

Author keywords

Distribution channel; Game theory; Product positioning; Production outsourcing; Upward channel decentralization

Indexed keywords

COMPETING FIRMS; COST BENEFITS; DISTRIBUTION CHANNEL; MANAGERIAL IMPLICATIONS; NEW THEORY; OUTSOURCE; PRODUCT POSITIONING; PRODUCTION COST; PRODUCTION OUTSOURCING; SOCIAL WELFARE; UPWARD CHANNEL DECENTRALIZATION;

MANUFACTURE; OUTSOURCING;

GAME THEORY;

EID: 79954565021     PISSN: 00251909     EISSN: 15265501     Source Type: Journal    
DOI: 10.1287/mnsc.1110.1311     Document Type: Article

References (38)

1. Anderson, E., B. A. Weitz. 1986. Make-or-buy decisions: Vertical integration and marketing. Sloan Management Rev. 27(3) 3-19.
2. Anderson, E. G., Jr., G. G. Parker. 2002. The effect of learning on the make-buy decision. Production Oper. Management 11(3) 313-339.
3. Anderson, S. 1987. Spatial competition and price leadership. Internat. J. Indust. Organ. 5(4) 369-398.
4. Baily, M. N., D. Farrell. 2004. Exploding the myths of offshoring. McKinsey Quart. (July), http://www.mckinseyquarterly.com/Exploding-the-myths-of- offshoring-1453.
5. Cachon, G. P., P. T. Harker. 2002. Competition and outsourcing with scale economies. Management Sci. 48(10) 1314-1333. (Pubitemid 35427816)
6. Carpenter, G. S. 1989. Perceptual position and competitive brand strategy in a two-dimensional two-brand market. Management Sci. 35(9) 1029-1044.
7. Chalos, P., J. Sung. 1998. Outsourcing decisions and managerial incentives. Decision Sci. 29(4) 901-919.
8. Choi, S. C. 1991. Price competition in a channel structure with a common retailer. Marketing Sci. 10(4) 271-296.
9. Coughlan, A., B. Wernerfelt. 1989. On credible delegation by oligopolists: A discussion of distribution channel management. Management Sci. 35(2) 226-239.
10. d'Aspremont, C., J. J. Gabszewicz, J. F. Thisse. 1979. On Hotelling's "stability in competition." Econometrica 47(5) 1145-1150.
11. de Fontenay, C. C., J. S. Gans. 2008. A bargaining perspective on strategic outsourcing and supply competition. Strategic Management J. 29(8) 819-839.
12. Desai, P., O. Koenigsberg, D. Purohit. 2004. Strategic decentralization and channel coordination. Quant. Marketing Econom. 2(1) 5-22.
13. Gerstner, E., J. D. Hess. 1995. Pull promotions and channel coordination. Marketing Sci. 14(1) 43-60.
14. Gilbert, S. M., Y. Xia, G. Yu. 2006. Strategic outsourcing for competing OEMs that face cost reduction opportunities. IIE Trans. 38(11) 903-915. (Pubitemid 44355857)
15. Guo, L. 2006. Consumption flexibility, product configuration, and market competition. Marketing Sci. 25(2) 116-130. (Pubitemid 43666207)
16. Gupta, S., R. Loulou. 1998. Process innovation, product differentiation, and channel structure. Marketing Sci. 17(4) 301-316.
17. Hauser, J. R. 1988. Competitive price and positioning strategies. Marketing Sci. 7(1) 76-91.
18. Hotelling, H. 1929. Stability in competition. Econom. J. 39(153) 41-57.
19. Ingene, C., M. Parry. 1995. Channel coordination when retailers compete. Marketing Sci. 14(4) 360-377. (Pubitemid 126028376)
20. Iyer, G. 1998. Coordinating channels under price and nonprice competition. Marketing Sci. 17(4) 338-355. (Pubitemid 128353597)
21. Jeffery, M. 2006. Supply chain outsourcing at DB Toys. Case Study KEL256, Kellogg School of Management, Northwestern University, Evanston, IL.
22. Jeuland, A. P., S. M. Shugan. 1983. Managing channel profits. Marketing Sci. 2(3) 239-271.
23. Kuksov, D. 2004. Buyer search costs and endogenous product design. Marketing Sci. 23(4) 490-499.
24. Kuhn, K. 1997. Nonlinear pricing in vertically related duopolies. Rand J. Econom. 28(1) 37-62.
25. Lal, R. 1990. Improving channel coordination through franchising. Marketing Sci. 9(4) 299-318.
26. Luo, L., P. K. Kannan, B. T. Ratchford. 2007. New product development under channel acceptance. Marketing Sci. 26(2) 149-163.
27. McGuire, T. W., R. Staelin. 1983. An industry equilibrium analysis of downstream vertical integration. Marketing Sci. 2(2) 161-191.
28. McMillan, J. 1990. Managing suppliers: Incentive systems in Japanese and U.S. industry. Calif. Management Rev. 32(4) 38-55.
29. Moorthy, K. S. 1988a. Product and price competition in a duopoly. Marketing Sci. 7(2) 141-168.
30. Moorthy, K. S. 1988b. Strategic decentralization in channels. Marketing Sci. 7(4) 335-355.
31. O'Brien, D. P., G. Shaffer. 1992. Vertical contracts with bilateral contracts. RAND J. Econom. 23(3) 299-308.
32. Qu, Z., M. Brocklehurst. 2004. What will it take for China to become a competitive force in offshore outsourcing? An analysis of the role of transaction costs in supplier selection. J. Inform. Tech. 18(1) 53-67. (Pubitemid 36564451)
33. Quinn, J. B., F. G. Hillmer. 1995. Strategic outsourcing. Mc-Kinsey Quart. (February), http://www.mckinseyquarterly.com/Strategic-outsourcing-74.
34. Sajeesh, S., J. S. Raju. 2010. Positioning and pricing in a variety seeking market. Management Sci. 56(6) 949-961.
35. Tyagi, R. 2000. Sequential product positioning under differential costs. Management Sci. 46(7) 928-940.
36. Venkatesan, R. 1992. Strategic outsourcing: To make or not to make. Harvard Bus. Rev. 70(6) 98-107.
37. Villas-Boas, J. M. 1998. Product line design for a distribution channel. Marketing Sci. 17(2) 156-169.
38. Weeks, M. R., D. Feeny. 2008. Outsourcing: From cost management to innovation and business value. Calif. Management Rev. 50(4) 127-146.