In this study, we consider the issue of sustainable development in the supply chain consisting of an original equipment manufacturer (OEM) and a contract manufacturer (CM). We investigate how to facilitate the CM’s investment in the environmental quality of a product so as to properly respond to climate change. We introduce a quantity incentive contract, and obtain the optimal solution based on a Stackelberg game. The OEM, as the focal company, determines the level of the incentive, and the CM, responsible for product design and production, determines its level of environmental quality given the OEM’s incentive offer. To investigate the effectiveness of the quantity incentive contract and provide important implications, we analytically compare the quantity incentive contract with the basic wholesale price contract without any incentives and conduct numerical experiments. Our results reveal that the quantity incentive contract facilitates the CM’s investment in environmental quality, and enhances the environmental, market, and profit performance of not only the CM but also the OEM which pays the incentive. We also show that the quantity incentive contract is suitable to develop a long-term relationship between the OEM and the CM.
The objective of this study is to examine the relationship of organizational justice, project performance and internal and external PMO (Project Management Office) capability by conducting survey of IT project participants worked with PMO. This study was the first case which classifies PMO capability into internal and external by ownership of PMO. PLS-SEM analysis, which used for this study shows internal PMO capability connects with distributive justice and procedural justice, and directly related to project performance. By comparison, external PMO capability has relationship only with procedural justice, but never related to project performance. Furthermore, distributive justice and procedural Justice all have correlation with project performance. In general, capability of external professional consulting firms is utilized for the fairness and objectivity in spite of sufficient internal
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