Modeling Formation and Operation of Collaborative Green Innovation between Manufacturer and Supplier: A Game Theory Approach

Abstract

Prior research has mainly emphasized the strategic importance of a collaborative green innovation (CGI) between the manufacturer and supplier in a supply chain, leading to an overlook at the decision-making mechanism and determinants of CGI. Guided by the transaction cost economics and social exchange theory, our study constructs a mathematical game model to incorporate the key dimensions of an effective inter-firm collaboration for green innovation. Applying the Nash game bargaining principles, our evolutionary game model analysis provides an analytic system to understand the mechanisms of forming and operating a collaboration partnership between the manufacturer and supplier for green innovation. Based on various scenarios from the numerical simulation parameters for the involved influencing factors, our simulation has produced the Nash equilibrium solutions and identified the major determining factors for successfully forming and operating CGI. They are the trust level between the manufacturer and supplier as the CGI partners, value/profit sharing ratio between the partners, knowledge complementarity of the partners, and product type for the green innovation.

[Retracted] Mediating Effect of Organizational Learning Capacity on the Relationship between Relational Embeddedness and Innovation Performance in Freight Logistics Service

“…When sharing complex information and tacit knowledge [15,16,23,59], organizations will show the characteristics of high cooperation. ey may solve problems together, encourage each other to innovate, 4 Complexity increase the chance of successful innovation, and improve innovation performance [15,16]. According to the above analysis, a hypothesis is presented as follows.…”

“…In addition to delivering goods to designated locations, FLS also considers transportation cost and time. It is a comprehensive logistics transportation mode, which provides shippers with more comprehensive and systematic processing, packaging, loading and unloading, storage, transportation, distribution, customs declaration, and inspection than freight or freight forwarding enterprises [3][4][5]. And FLS breaks the traditional management thinking, not just freight transportation.…”

“…With the intense competition and the differentiation of customer demand [8,9], service innovation has become a significant method for FLFs to obtain competitive advantages and maintain sustainable development [4]. Cooperative innovation provides an effective mode for firms to learn technology and create knowledge and capacity.…”

Application of supplier collaborative management in a Cuban commercial chain

“…The study of collaborative supplier´s management in source chains presents different perspectives: from the management of stakeholders and their processes to achieving the objective of the chain (Miyazhdenovna et al, 2020), the variables of sustainability, innovation (Li et al, 2020) and optimization of management (supply, demand, production capacity, customer service, costs, cycles, inventory), the development of the Scor model and within this, the supplier process. On the other hand, the use of philosophies that promote collaborative supplier management such as: CPFR for its acronym in English Collaborative Planning Forecasting and Replenishment (Karadayi-Usta, 2020) and SRM for its acronym in English Supplier Relationship Management (Adesanya et al, 2020).…”

Impact of Strategic Cooperation under Competition on Green Product Manufacturing

“…Due to a growing awareness among consumers about the environmental impact on products they procure, it is always an important issue to study the transition of supply chain decisions by considering the impact of green quality sensitivity in-demand function. Therefore, researchers studied characteristics of supply chain equilibrium where the demand function is influenced by the green quality level and retail price [37][38][39][40][41][42][43][44]. This group of researchers primarily focused on the equilibrium decisions under the various game-theoretic models or discuss performance under various supply chain coordination mechanisms, generally under a single manufacturer-single retailer setting.…”