[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v46y2025i1p469-488.html
   My bibliography  Save this article

Agency mode selection and software competition in supply chains

Author

Listed:
  • Tinghai Ren
  • Nengmin Zeng
  • Dafei Wang
  • Kaifu Yuan
Abstract
At present, many software developers work with downstream service providers to sell software and services. For political or economic reasons, foreign developers may be not allowed to sell software and services directly in the country of providers, but they can authorize their software to the providers for sale. In this study, we examine two types of IT supply chain (ITSC), namely, “Agenting Domestic Software” (Mode 1) and “Agenting Foreign Software” (Mode 2), each with a domestic developer/a foreign developer, a service provider, and client enterprises. In both modes, clients can either pay a high price to purchase software with accessorial pre‐sale service from the provider, or firsthand acquire it from the domestic developer at a low price but without pre‐sale service. We observe that in Mode 1, the domestic developer's market scale and the competition intensity of software have no effect on the domestic developer's decisions and profit; however, they have influences on the provider's decisions and profit. In Mode 2, the profits of ITSC members may increase with the intensity of software competition. When the domestic developer's market scale is small (large), and the domestic developer has (loses) the advantage of low extended‐warranty‐service (EWS) cost, Mode 1 (2) is more beneficial to the domestic developer than Mode 2 (1); however, the provider is more willing to choose Mode 2 (Mode 1). In other cases, either Mode 1 or Mode 2 may result in a win‐win situation for the domestic developer and provider.

Suggested Citation

  • Tinghai Ren & Nengmin Zeng & Dafei Wang & Kaifu Yuan, 2025. "Agency mode selection and software competition in supply chains," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(1), pages 469-488, January.
    • Handle: RePEc:wly:mgtdec:v:46:y:2025:i:1:p:469-488
    DOI: 10.1002/mde.4385
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.4385
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.4385?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:46:y:2025:i:1:p:469-488. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.