Loading…

Quality decision and demand information sharing: The role of blockchain adoption

•The impact of blockchain adoption on product quality decision.•The optimal combination of information sharing and blockchain adoption strategy.•Blockchain adoption can alleviate the double marginalization effect.•Blockchain adoption can encourage the online platform to share demand information. In...

Full description

Saved in:
Bibliographic Details
Published in:Computers & industrial engineering 2024-03, Vol.189, p.109991, Article 109991
Main Authors: Zhang, Chong, Zhu, Yi, Ren, Xuejie
Format: Article
Language:English
Subjects:
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:•The impact of blockchain adoption on product quality decision.•The optimal combination of information sharing and blockchain adoption strategy.•Blockchain adoption can alleviate the double marginalization effect.•Blockchain adoption can encourage the online platform to share demand information. In reality, numerous manufacturers adopt blockchain technology to eliminate consumers distrust in product quality which can expand the market demand. Advanced information technology and vast amounts of consumer data have empowered online retail platforms to share demand information with manufacturers, which can motivate manufacturers to improve product quality. However, the double marginalization effect is potentially exacerbated. Considering quality distrust, this paper develops a multi-stage game-theoretical model to study the interplay between blockchain adoption and information sharing strategy. The analysis not only investigates the dependence of the interplay on the quality cost coefficient and the unit cost of blockchain adoption, but also endeavors to determine the equilibrium strategy combination of blockchain adoption and information sharing. The findings indicate that blockchain adoption can alleviate the double marginalization effect and improve product quality conditionally. Additionally, irrespective of the level of consumers trust, the manufacturer exhibits a propensity to embrace blockchain technology. This adoption of blockchain has the potential to incentivize the online platform to share demand information under certain conditions. Several extended modelling analyses are conducted to check the robustness of the main model and additional insights are obtained.
ISSN:0360-8352
1879-0550
DOI:10.1016/j.cie.2024.109991