Recently, Prof. Liu Bin's team published a paper New product Financing decision: Crowdfunding, bank or supply chain?” in International Journal of Production Economics, a leading international journal (CAS 1, Top Journal, IF=11.251, ABS 3-star Journal, ranked No. 3/99 among journals in the field of operations research and management science). Prof. Liu Bin is the corresponding author of the paper, and his PhD student Chen Yuting is the first author (currently a postdoctoral fellow at Tsinghua University).
In addition to bank loans, supply chain financing has emerged as an option for capital-constrained firms to seek financial help from their upstream or downstream, and crowdfunding is seen as a novel source of financing for innovative products, allowing capital-constrained manufacturers to raise initial capital from a group of investors. The paper investigates the optimal financing strategy for capital-constrained manufacturers when a new product requires critical components from monopolistic and well-capitalized suppliers, exploring optimal component ready time and wholesale pricing decisions under different financing strategies. It is found that the supplier's optimal component ready time is always later than the manufacturer's optimal preannounced time under crowdfunding. With information asymmetry under crowdfunding, both the manufacturer and supplier strive to release the product on time with high initial demand and low demand decay rate and encounter a Prisoner's Dilemma with low initial demand level and high demand decay rate under crowdfunding. In addition, crowdfunding is a dominant strategy if the demand window and financing target are high while supplier financing interest is low. However, bank financing stands out when the demand window is short while the financing target is high or the demand window is large while the financing target is low. In addition, supply chain financing can outplay bank financing only when the sales window is minor while the financing target is lower.
In addition to the above paper, since he joined our university in November 2021, Prof. Liu Bin has published 8 academic papers as first author/corresponding author in high level journals such as Journal of Retailing and Consumer Services (JCR-1, IF=7.135), Energy and Buildings (JCR-1, Top Journal, IF= 7.201), Grey Systems-Theory and Application (JCR-2) and other high-level journals, reflecting the remarkable achievements of Business School in scientific research and talent recruitment in recent years.
Remark:
International Journal of Production Economics, published by Elsevier, is one of the top journals of SCI journal division Engineering and Technology and Engineering: Industrial. It is also a Q1 journal in the field of Engineering, Manufacture/ Operations Research & Management Science/ Engineering, Industrial in JCR division. The latest impact factor of this journal is 11.251 (2021).
According to Elsevier's 2021 Cite Score, the journal is in the top 1% of international journals in the Operations Research & Management Science category, and it has been selected as a three-star journal by ABS (the Association of Business Schools).
Translator: XU Jiawen
Reviewer: QIAN Ying
