Work

Selection of financing strategies and business modes for a capital-constrained manufacturer

Year: 2022

Type: article

Abstract: E-commerce platforms adopt both reseller and agency business modes to achieve better performance, and also provide financing services for qualified manufacturers to alleviate their financial difficulties. This paper analyzes financing strategy (bank financing or platform financing) and business mode selection (reseller mode, agency mode or both of them) for a capital-constrained manufacturer. We find that no matter which business mode is adopted, the platform always provides lower interest rates than bank, which in turn makes retail prices lower. Meanwhile, the manufacturer and the platform can become more profitable under platform financing. In addition, compared with the manufacturer adopting bank financing, the manufacturer has different business mode preferences when adopting platform financing. We put forward business mode recommendations for the manufacturer under different financing strategies.

Source: RAIRO - Operations Research

DOI: 10.1051/ro/2022128

Authors: Yi Gao, Lei Fang

Institution: Nankai University

Language: English

Topic: Supply Chain and Inventory Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid:

Funders: National Natural Science Foundation of China, Jilin Office of Philosophy and Social Science