Coordination and Incentive Mechanisms on Collaborative Investment in the Supply Chain

2 Pages Posted: 7 Apr 2011

See all articles by Pei Zhao

Pei Zhao

affiliation not provided to SSRN

Zhongkai Xiong

Chongqing University

Yu Xiong

Queen's University Management School

Date Written: March 31, 2011

Abstract

This paper examines coordination problems and corresponding incentive mechanisms between a retailer and a third-party Logistics for jointly investing in an information technology that has the potential to improve the efficiency and security of the supply chain. The conclusion indicates that internal incentive mechanisms, such as investment cost sharing among supply chain partners, are not likely to resolve underinvestment problems completely; Instead, external financial incentive mechanisms, such as tax incentives, need to be considered to coordinate the supply chain.

Keywords: Supply chain management; collaborative investment; incentive mechanisms

JEL Classification: P41

Suggested Citation

Zhao, Pei and Xiong, Zhongkai and Xiong, Yu, Coordination and Incentive Mechanisms on Collaborative Investment in the Supply Chain (March 31, 2011). Available at SSRN: https://ssrn.com/abstract=1799865 or http://dx.doi.org/10.2139/ssrn.1799865

Pei Zhao (Contact Author)

affiliation not provided to SSRN

Zhongkai Xiong

Chongqing University ( email )

Shazheng Str 174, Shapingba District
Shazheng street, Shapingba district
Chongqing 400044, Chongqing 400030
China

Yu Xiong

Queen's University Management School ( email )

Belfast, Northern Ireland BT7 1NN
United Kingdom

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