Analysis of competitive manufacturers’ collection decisions given cross-shareholding and capital constraints
Entrusting a third party and implementing a trade-in program are two main ways for manufacturers to collect used products. By establishing two closed-loop supply chain competition models, this study analyses the co-existence conditions of third-party collection and trade-in collection adopted by com...
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| Format: | Article |
| Language: | English |
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Elsevier
2023-08-01
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| Series: | Heliyon |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844023060796 |
| _version_ | 1827856127584370688 |
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| author | Jiang-xin Li Ji-zu Li Yu-cheng Wu |
| author_facet | Jiang-xin Li Ji-zu Li Yu-cheng Wu |
| author_sort | Jiang-xin Li |
| collection | DOAJ |
| description | Entrusting a third party and implementing a trade-in program are two main ways for manufacturers to collect used products. By establishing two closed-loop supply chain competition models, this study analyses the co-existence conditions of third-party collection and trade-in collection adopted by competitive manufacturers M1 and M2 respectively. Then, based on an analysis of the impact of R&D improvement on the collection decision, the impacts of horizontal cross-shareholding and financing parameters on the collection decision and profit are explored, respectively. The results show that when consumers are low-value customers who prefer cash back over purchasing a new product, competitive manufacturers with different collection channels consider improving their R&D level. The R&D improvement of M1 reduces the trade-in price and the third-party collection price, and shrinks the collection market. However, the R&D improvement of M2 increases the trade-in price and the third-party collection price. In addition, the trade-in collection market shrinks and the third-party collection market increases. In the case of cross-shareholding, the increase of M1's share helps reduce the trade-in price and the third-party collection price, while the increase of M2's share helps increase the trade-in price and the third-party collection price. In factoring financing, the increase in the factoring rate reduces the total collection quantity in the collection market, but helps improve the earnings of M2 from the collection of used products. In the case of equity financing, the increase in equity not only increases the total amount of collection, but also the earning of M1 from the collection of used products. |
| first_indexed | 2024-03-12T12:21:16Z |
| format | Article |
| id | doaj.art-06e180b5b8b1404db8132f532ae5538b |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-03-12T12:21:16Z |
| publishDate | 2023-08-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-06e180b5b8b1404db8132f532ae5538b2023-08-30T05:52:55ZengElsevierHeliyon2405-84402023-08-0198e18871Analysis of competitive manufacturers’ collection decisions given cross-shareholding and capital constraintsJiang-xin Li0Ji-zu Li1Yu-cheng Wu2School of Economics and Management, Taiyuan University of Technology, Jinzhong, 030600, Shanxi, China; Corresponding author. No.209, University Street, Yuci District, Jinzhong City, Shanxi Province, China.School of Economics and Management, Taiyuan University of Technology, Jinzhong, 030600, Shanxi, ChinaNational International Science and Technology Cooperation Base for Advanced Energy and Environmental Materials, Hefei University of Technology, Hefei, 230009, Anhui, China; Key Laboratory of New Material Interface Science and Engineering of Ministry of Education, Taiyuan University of Technology, Taiyuan, 030024, Shanxi, ChinaEntrusting a third party and implementing a trade-in program are two main ways for manufacturers to collect used products. By establishing two closed-loop supply chain competition models, this study analyses the co-existence conditions of third-party collection and trade-in collection adopted by competitive manufacturers M1 and M2 respectively. Then, based on an analysis of the impact of R&D improvement on the collection decision, the impacts of horizontal cross-shareholding and financing parameters on the collection decision and profit are explored, respectively. The results show that when consumers are low-value customers who prefer cash back over purchasing a new product, competitive manufacturers with different collection channels consider improving their R&D level. The R&D improvement of M1 reduces the trade-in price and the third-party collection price, and shrinks the collection market. However, the R&D improvement of M2 increases the trade-in price and the third-party collection price. In addition, the trade-in collection market shrinks and the third-party collection market increases. In the case of cross-shareholding, the increase of M1's share helps reduce the trade-in price and the third-party collection price, while the increase of M2's share helps increase the trade-in price and the third-party collection price. In factoring financing, the increase in the factoring rate reduces the total collection quantity in the collection market, but helps improve the earnings of M2 from the collection of used products. In the case of equity financing, the increase in equity not only increases the total amount of collection, but also the earning of M1 from the collection of used products.http://www.sciencedirect.com/science/article/pii/S2405844023060796Closed-loop supply chainCollection decisionsTrade-inCross-shareholdingCollection capital constraint |
| spellingShingle | Jiang-xin Li Ji-zu Li Yu-cheng Wu Analysis of competitive manufacturers’ collection decisions given cross-shareholding and capital constraints Heliyon Closed-loop supply chain Collection decisions Trade-in Cross-shareholding Collection capital constraint |
| title | Analysis of competitive manufacturers’ collection decisions given cross-shareholding and capital constraints |
| title_full | Analysis of competitive manufacturers’ collection decisions given cross-shareholding and capital constraints |
| title_fullStr | Analysis of competitive manufacturers’ collection decisions given cross-shareholding and capital constraints |
| title_full_unstemmed | Analysis of competitive manufacturers’ collection decisions given cross-shareholding and capital constraints |
| title_short | Analysis of competitive manufacturers’ collection decisions given cross-shareholding and capital constraints |
| title_sort | analysis of competitive manufacturers collection decisions given cross shareholding and capital constraints |
| topic | Closed-loop supply chain Collection decisions Trade-in Cross-shareholding Collection capital constraint |
| url | http://www.sciencedirect.com/science/article/pii/S2405844023060796 |
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