When and how to introduce upstream competition in an innovation supply chain

摘要: Considering an innovation supply chain with a primary supplier involvement in the new product development of a downstream manufacturer who sells to consumers, we address when and how to introduce a secondary supplier by applying order commitment besides innovation quality-dependent contract and revenue-sharing contract. Our results show that the secondary supplier should be invited after the new product development is achieved. The innovation quality-dependent order commitment contract can improve the innovation quality of the supply chain. The innovation quality-dependent wholesale price contract warrants the supplier's innovation quality to keep the same level as the single-supplier supply chain and improves the primary supplier's profit. The incentive effect of a revenue-sharing contract on the supplier's innovation quality is more substantial when introducing a secondary supplier after new …