Blockchain Introduction and Live Streaming Strategy for a Dual-Channel Supply Chain

This study examines blockchain introduction and live streaming strategy for a dual-channel supply chain consisting of a supplier and an e-tailer. The supplier distributes products through the e-tailer and develops a direct sales channel. Four scenarios are assumed for the blockchain adoption of the supplier and the live streaming sales adoption of the e-tailer: Neither party adopts blockchain or live streaming sales, or only one does; The supplier uses blockchain and the e-tailer uses live streaming sales. The two supply chain members are also assumed to play a Stackelberg game where the supplier is a leader and the e-tailer is a follower. Furthermore, the profit optimization models are developed under the four scenarios and these models are then resolved by backward induction to derive the closed forms of the equilibrium solutions. The impacts of the key parameters on equilibrium decisions and profits are further explored. The results show that a high information accuracy induces the supply chain member to shift from a low-price to a high-price strategy under a certain condition. When the e-tailer uses live streaming sales, the supply chain member should shift from a high-price to a low-price strategy if this sales attracts more consumers in the direct sales channel. The two members should always work in cooperation, with the supplier using blockchain and the e-tailer using live streaming sales regardless of the product information and live streaming effect. However, their cooperation on the introduction of blockchain and live streaming sales is affected by the wholesale price and the competition intensity.