Securing the network in e-retailing and manufacturing: a balanced decision analysis under competition and cooperation modes

Abstract

With the continuous emergence of network problems, the e-commerce supply chain faces the risk of network attacks. This paper studies a dual-channel supply chain, where manufacturers can earn revenue through online channels (i.e. manufacturers sell products through e-retailers) and offline channels (i.e. manufacturers sell products directly to consumers). In the online channel, we analysed two modes. The first is the competitive model, where e-tailers buy products from manufacturers and resell them to consumers. The second is a cooperative model, in which manufacturers pay a commission to sell products to consumers on e-retailer platforms. We divide the network risk prevention methods into three models: the M model (wherein the manufacturer conducts risk defense blocking), the E model (wherein e-retailers conduct risk defense blocking), and the ME model (wherein e-retailers and manufacturers conduct risk defense blocking simultaneously). These cases are discussed in this paper. The results show that manufacturers and e-retailers will gain the highest profit in the ME model, regardless of competition mode or cooperation mode. As a result, manufacturers and retailers can simultaneously mount cyber defenses seeking to maximize profits. In addition, government subsidies have a positive effect on encouraging supply chain members to take defensive measures.

KEYWORDS:

• Network security
• electronic retailing
• supply chain

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability statement

Data is available on request from the authors. The data supporting this study’s findings are available from the corresponding author, [Y Bai], upon reasonable request.

Additional information

Funding

The research is supported by The National Social Science Fund of China (Grant number: 21CGL050).