Recently, the research result "When Gray Markets Meet" Made in China ": The Impact of Global Markets and Value Added Tax Refund" led by Professor Jiang Zhongzhong's team from the School of Business Administration of NEU was published online in the UTD24 international top journal Production and Operations Management, achieving another breakthrough in the joint publication of papers by NEU faculty and students in top international management journals. The research results were jointly completed by Dr. Zang Yuanji from the School of Business Administration of NEU and Associate Professor Xu Jiayan from the School of Management of Sun Yat-sen University.
Nowadays, "Made in China" has become a common and important feature of GSCs, whereby Chinese manufacturers produce products for multinational corporations (MNCs) through the provision of contract manufacturing services. However, the booming development of cross-border e-commerce has fostered a new type of grey market, such as substitute purchasing, which takes advantage of the difference in selling prices of products in different countries/regions to resell products for arbitrage and disrupt the market, posing a challenge to the management of GSCs by multinational corporations (MNCs). The study proposes three strategic market regulation behaviors (i.e., allowing, blocking, and ignoring) for MNCs to deal with the grey market, and explores the impacts of two important factors, namely, China's VAT refund policy and grey market consumer valuation discounts, on the operations of GSCs. The study reveals for the first time that MNCs' market regulation behaviors of allowing grey markets to exist may benefit MNCs, contract manufacturers and grey markets, achieving a win-win situation for all three parties; MNCs may widen the price difference between domestic and overseas markets when the size of the two markets is similar in order to stimulate grey market activities and increase their own profits. In particular, unlike the traditional perception that MNCs prefer the weaker contract manufacturer, the contract manufacturer's decision-making power can help MNCs gain a cost advantage in dealing with grey market incursions. The study provides scientific guidance for the operational scheme of GSCs under potential grey market intrusion.
It is reported that the 24 journals on the UTD journal list (referred to as UTD24) are recognized as the top-tier journals in management disciplines worldwide, including six directions: information, operations, finance, accounting, marketing, and business. Production and Operations Management (POM) is the flagship journal of the International Society for Production and Operations Management, as well as the UTD24 journal (internationally recognized as one of the top 24 academic journals in business schools). It enjoys a high academic reputation in the international management community and is an important basis for evaluating management disciplines both domestically and internationally.
It is reported that in recent years, the School of Business Administration of NEU has formulated a series of scientific supporting systems, providing strong guarantees for high-level scientific research and high-quality talent cultivation. By actively guiding the faculty and students of the college to stay at the forefront of international academic research and conduct top-notch high-quality research, the college's influence in international academic and social services can be continuously enhanced.
