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| Research on the Impact of Channel Model and Channel Power on Manufacturer Innovation |
| CHEN Anping，LI Wei，LI Kai，YANG Huishu |
| 1. Northeastern University, Shenyang, China; 2. Ping An Life Insurance Company of China, Ltd., Shenyang, China; 3. Chinese Academy of Social Sciences, Beijing, China |
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Abstract This study examines the impact of channel pattern and channel power on the innovation decision of the manufacturer by building innovation decision models in different channel power based on the traditional channel and the dual channel. The study shows that under the traditional channel, the enhancement of the downstream retailer’s channel power will weaken the manufacturer’s innovation incentives; under the dual channel, the impact of the retailer’s channel power on the manufacturer’s innovation incentives mainly depends on the price competition between traditional channels and network channels. When the competition is week, the retailer’s channel power will increase the manufacturer’s innovation incentives; when the competition is fierce, the retailer’s channel power will inhibit the manufacturer’s innovation incentives. No matter the manufacturer’s channel power is stronger or the retailer’s channel power is stronger, the emergence of network channels will positively stimulate the manufacturer’s innovation. But the increase in price competition will weaken the positive impact of network channels on the manufacturer’s innovation.
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Received: 09 September 2019
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