Dual-Source Procurement Strategy of Cross-Border E-Commerce Supply Chain considering Members’ Risk Attitude

• Published in: Security and communication networks Vol. 2022; pp. 1 - 13
• Main Authors: Zhao, Zhao, Liu, Zheng, Qian, Qingshan, Li, Lingling, Zhao, Yuanjun, Zhu, Yuqing
• Format: Journal Article
• Language: English
• Published: London Hindawi 03.06.2022; John Wiley & Sons, Inc
• Subjects: Algorithms; Attitudes; Cooperation; Customer services; Decision making; Disruption; Electronic commerce; Employees; Globalization; Impact analysis; Manufacturers; Mathematical models; Mobile commerce; Preferences; Pricing; Procurement; Profits; Propagation; Retail stores; Risk aversion; Risk factors; Risk management; Strategy; Suppliers; Supply chains; China
• ISSN: 1939-0114; 1939-0122
• DOI: 10.1155/2022/3592859

The risk attitude of decision-makers will significantly affect the decision-making of enterprise risk management. Specifically, high risk represents the potential premise of high return for risk preference decision-makers, and for risk-averse decision-makers, the increase of risk degree will stimulate decision-makers’ aversion to uncertainty and turn to seek safer business strategies. Although there are many pieces of literature on the risk preference of decision-makers, they usually only assume the risk attitude of one party and rarely consider the risk attitude of suppliers and retailers in the scenario of cross-border e-commerce at the same time. Therefore, under the background of supply disruption, for the cross-border e-commerce supply chain composed of cross-border suppliers, overseas suppliers, overseas retailers, and consumers, combined with the risk attitude preference of enterprise subjects, this paper constructs the mean-variance model dominated by overseas retailers and reversely solves the risk-aversion attitude of a single cross-border supplier. When a single overseas retailer maintains a risk-aversion attitude and both cross-border suppliers and overseas retailers hold a risk-neutral or risk-aversion attitude, the pricing of products in different channels is analyzed. Finally, an example is given to analyze the impact of supply disruption probability, risk-aversion coefficient, channel distribution coefficient, and other parameters on purchase price, market demand, target profit, and utility. It is of great practical significance for improving the stability of cross-border e-commerce supply chain system and reducing revenue loss to study how different degrees of risk-aversion attitudes of cross-border suppliers and overseas retailers affect enterprise procurement pricing strategy, target profit, and utility in case of supply disruption.