To be or not to be green? Strategic investment for green product development in a supply chain

Dong, Chaohua; Liu, Qingyu; Shen, Bin

doi:10.1016/j.tre.2019.09.010

Cited by 149 publications

(61 citation statements)

References 41 publications

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“…Green supply chain cooperation has an important impact on sustainable product development and operations mode [11][12][13][14][15] and has become a positive change in corporate strategy for various companies [14,15]. Cooperation can be divided into vertical and horizontal cooperation and among the two types of cooperation and their cooperation performance is impacted by different ways [16][17][18][19][20][21][22].…”

Section: Cooperation In Green Supply Chainmentioning

confidence: 99%

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Value Co-Creation Behavior in Green Supply Chains: An Empirical Study

Shi

Dong

et al. 2020

Energies

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As an important supply chain development strategy, green investment and sustainability are concerns of the government and enterprises. However, due to the high cost and low profit of green investment, a large number of small and medium-sized firms can be deterred from their implementation. Value co-creation has become a key measure to solve this problem. This article explores the relationship between the green supply chain (GSC) strategy, value co-creation, and corporate performance in the manufacturing environment, and considers the regulatory effects of internal environmental factors and external environmental pressures on this relationship. Based on data from 115 manufacturers in China, we tested the hypotheses, explained the statistical results, and identified key concerns for implementing GSC through value co-creation. The findings reveal that the GSC strategy can promote a high level of firms’ value co-creation with their supply chain partners, and different value co-creation modes have different effects on firm performance (i.e., operational performance, innovation performance, and financial performance). In addition, the findings indicate that macro-level external pressure and micro-level internal support could enhance such effects. This study enriches the literature with value co-creation modes and GSC management by integrating GSC strategies and value co-creation strategies, providing confidence to the firms and their supply chain partners in value co-creation, thus helping them to better implement a GSC strategy.

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Section: Cooperation In Green Supply Chainmentioning

confidence: 99%

“…Energies 2020, 13, 3902 2 of 23 Effective management of a green supply chain (GSC) requires an expanded perspective beyond a focus company including supply chain partners [4]. Value co-creation is considered as a business cooperation strategy for supply chain partners.…”

Section: Introductionmentioning

confidence: 99%

Value Co-Creation Behavior in Green Supply Chains: An Empirical Study

Shi

Dong

et al. 2020

Energies

Self Cite

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“…(5) With the prevalence of "green consumption", more and more consumers will compare products in different dimensions, such as environmentally friendly features, and some of them are even willing to pay a premium for green products [40]. Thus, suppose that consumers are relatively sensitive to the green manufacturing level of products, and the demand of consumers for a product has a positive linear relationship with the green manufacturing level of the product i (θ i ) [41]. (6) In order to develop green manufacturing and produce green products based on the original production process, two green manufacturers need to invest some extra cost.…”

Section: Assumptions and Notationsmentioning

confidence: 99%

Bundling or Unbundling? Pricing Strategy for Complementary Products in a Green Supply Chain

2020

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Retailers usually sell complementary products jointly with a discounted price to attract more consumers. However, the difference of complementary degree between products leads to the diversity of pricing. In parallel, with the development of green supply chains, the extra cost of manufacturers to conduct ecological product design makes the pricing of complementary products further complicated. Thus, it is important to clarify the pricing strategy for complementary products in a green supply chain. Based on the Stackelberg games between two manufacturers and a retailer, this paper constructs three pricing models to simultaneously analyze the changes in the optimal profits of supply chain members and the optimal green manufacturing degree of complementary products. The results demonstrate that: (i) In most cases, two manufacturers prefer the pure bundling pricing strategy, but the strategy preference of the retailer is complex. (ii) The green manufacturing is mutually beneficial for complementary manufacturers and worth advocating. (iii) The increasing sensitivity of consumers to the green manufacturing level of one product will also be detrimental to the improvement of the optimal green manufacturing level of its complementary products.

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“…Following Choi and Fredj ( 2013 ), Dong et al ( 2019 ) and Shen et al ( 2020 ), we establish a downward sloping linear demand function which is given by: where represents the uncertainty level for the market potential. Following Huang et al ( 2018 ), we assume that is uniformly distributed in [0, 2 ].…”

Section: Modelmentioning

confidence: 99%

Mobile payment, third-party payment platform entry and information sharing in supply chains

et al. 2020

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With the development of information technology, increasing retailers cooperate with third-party payment platforms (3PPs) to provide mobile payment service for consumers. The entry of 3PPs into supply chains, not only changes the cash flow, but also decreases consumer price sensitivity and stimulates demand by facilitating credit consumptions. Moreover, information sharing becomes more feasible with the help of 3PPs. To study the impacts of 3PP entry, we build game-theoretic models in a supply chain consisting of a manufacturer, a retailer and a 3PP, and derive the equilibrium in both the non-information sharing and information sharing cases. We show that the 3PP should make a reasonable commission rate which can lure the retailer to introduce the 3PP as well as maintain the 3PP’s profitability. The 3PP entry allows the retailer to set a higher price without decreasing the demand. However, to seize all of the benefit of the 3PP entry, the first mover manufacturer increases the wholesale price to a large extent. As a result, the 3PP entry causes a win-lose situation for the manufacturer and the retailer. The supply chain can be better off from the 3PP entry if it can significantly decrease consumer price sensitivity or its fixed investment cost is low. Furthermore, we find that information sharing benefits the manufacturer and the 3PP but harms the retailer. While information sharing always decreases the expected profit for the supply chain without the 3PP, it may increase that for the supply chain with the 3PP. To improve the supply chain profitability, we suggest to provide incentives for retailer information sharing if the 3PP can significantly decrease consumer price sensitivity (i.e., the proportion of the 3PP users is higher, the grace period of credit consumption is lower, or the cash opportunity cost is lower).

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To be or not to be green? Strategic investment for green product development in a supply chain

Cited by 149 publications

References 41 publications

Value Co-Creation Behavior in Green Supply Chains: An Empirical Study

Value Co-Creation Behavior in Green Supply Chains: An Empirical Study

Bundling or Unbundling? Pricing Strategy for Complementary Products in a Green Supply Chain

Mobile payment, third-party payment platform entry and information sharing in supply chains

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