Business, Management and Accounting
8 years ago

Competition drives innovation in supply chains, benefiting consumers and manufacturers alike.

1 view
SSRN Electronic Journal
Impact of Competition on Innovation When Selling through an Intermediary Retailer
Jingqi Wang, Hyoduk Shin

Paper Summary

Competition among manufacturers in a supply chain leads to more innovation. Inferior manufacturers invest more in innovation compared to superior ones when facing competition. When there is a complementary component manufacturer involved, competition encourages all manufacturers to innovate even more.

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