Trade disruptions, behavioral biases, and social influences: Can luxury sporting goods supply chains be immunized?

Sobhan Asian; Jian Wang; Geoff Dickson

doi:10.1016/j.tre.2020.102064

Trade disruptions, behavioral biases, and social influences: Can luxury sporting goods supply chains be immunized?

Transp Res E Logist Transp Rev. 2020 Nov:143:102064. doi: 10.1016/j.tre.2020.102064. Epub 2020 Sep 25.

Authors

Sobhan Asian¹, Jian Wang², Geoff Dickson¹

Affiliations

¹ La Trobe Business School, La Trobe University, Melbourne, Australia.
² School of Economics and Management, Jiangsu University of Science and Technology, Zhenjiang, PR China.

Abstract

This paper studies a luxury sporting goods supply chain (LSGSC) experiencing trade disruption and market volatility. We propose a flexible trade credit contract with minimum order quantity (MOQ) and design a coordination mechanism between a supplier and a loss-averse wholesaler. We extend our study to a multi-tiered product setting and examine the impacts of social influences and loss aversion on SC decisions and channel coordination. Given the gloomy post-Covid-19 economic prospects in an era of reglobalization, this study urges trade associations and business leaders to immunize their SCs by considering behavioral biases and social influences and revisiting their contractual obligations.

Keywords: Behavioral bias; Luxury sporting goods; Reglobalization; Social influence; Supply chain coordination; Trade credit contract; Trade disruption.