Strategies for E-retailers to cope with supply chain disruption: a hybrid perspective on sourcing and pricing

Purpose In this digital age and risk society, this study aims to explore innovative strategies for E-retailers during supply chain disruptions to construct a more resilient supply chain system. Design/methodology/approach Various game theoretical models are constructed to analyze four supply chain scenarios. Meanwhile, sufficient numerical analysis was conducted to observe the impact of key parameters on supply chain strategies. Findings Multiple crucial factors exert a comprehensive influence on E-retailers’ decisions on sourcing and pricing, leading to the diversity and complexity of decision-making conditions. First, with the increased probability of disruption, the purchase quantities of the E-retailer from different suppliers are not in a linear changing pattern, and the total purchase quantity is allocated variably between different suppliers. Second, the variation in disruption severity (partial or complete) results in the shift of decisions between single-sourcing and dual-sourcing. Responsive pricing is conducive to increasing the purchase quantity and profits under partial disruption; its advantages are diminished when completely disrupted. Third, higher commission rates usually have a detrimental impact on profit, whereas responsive pricing may mitigate this impact. Originality/value Unlike the previous single perspective, this study innovatively explores strategies from the hybrid perspective of sourcing and pricing. By extracting two key factors (disruption probability and severity), it realizes the scientific characterization of supply chain disruptions. These achievements boost theoretical innovation. Concentrating on E-retailers, it avoids the generalization of conclusions and enhances the application value.