Evolution of the Complex Partnerships between Banks and B2B e-Trading Platforms: A Theoretical Interpretation from the Chinese Market
Joint Authors
Lai, Kin Keung
Shi, Jinzhao
Guo, Ju’e
Du, Qiang
Bai, Libiao
Li, Yi
Yan, Wenjun
Source
Issue
Vol. 2020, Issue 2020 (31 Dec. 2020), pp.1-14, 14 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2020-05-15
Country of Publication
Egypt
No. of Pages
14
Main Subjects
Abstract EN
Based on the principal-agent theory, we give a theoretical interpretation on evolution of the complex partnerships between the online SCF (supply chain finance) providers in China.
First, we describe the principal-agent relationships and analyze the optimal profit-sharing contracts between the banks and the B2B platforms.
Then, from a dual perspective of leadership transfer and absolute benefit change, we explain the behavioral choices of the banks in the cooperation.
Results show that, at the initial stage of growth of the platforms’ abilities to rate online borrowers, the leadership and the absolute benefit of the banks will suffer a “double decline,” which explains why the leading banks in China “divorced” the B2B platforms during 2011 to 2013.
However, as the platforms’ rating abilities grow to “maturity,” the absolute benefit of the banks will finally exceed its original level, and then the rational banks would cooperate with the platforms again even at the expense of losing a portion of their leadership, which answers why the banks in China have come back to “remarry” the B2B platforms since 2014.
American Psychological Association (APA)
Shi, Jinzhao& Guo, Ju’e& Du, Qiang& Bai, Libiao& Li, Yi& Yan, Wenjun…[et al.]. 2020. Evolution of the Complex Partnerships between Banks and B2B e-Trading Platforms: A Theoretical Interpretation from the Chinese Market. Complexity،Vol. 2020, no. 2020, pp.1-14.
https://search.emarefa.net/detail/BIM-1145540
Modern Language Association (MLA)
Shi, Jinzhao…[et al.]. Evolution of the Complex Partnerships between Banks and B2B e-Trading Platforms: A Theoretical Interpretation from the Chinese Market. Complexity No. 2020 (2020), pp.1-14.
https://search.emarefa.net/detail/BIM-1145540
American Medical Association (AMA)
Shi, Jinzhao& Guo, Ju’e& Du, Qiang& Bai, Libiao& Li, Yi& Yan, Wenjun…[et al.]. Evolution of the Complex Partnerships between Banks and B2B e-Trading Platforms: A Theoretical Interpretation from the Chinese Market. Complexity. 2020. Vol. 2020, no. 2020, pp.1-14.
https://search.emarefa.net/detail/BIM-1145540
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1145540