Optimal decision-making considering inter-supply-chain competition and negative-spillover from environmental effort
Received date: 2022-08-20
Revised date: 2022-10-28
Accepted date: 2022-11-29
Online published: 2023-01-31
Focusing on negative-spillover from environmental effort, this paper explores the issues of competition and optimal decision-making based on two competing two-stage manufacturer-dominated supply chains: centralized and decentralized. We develop the Stackelberg competition models according to four identified competition scenarios (pure centralized structure-CC, mixed structure-DC, mixed structure-CD, and pure decentralized structure-DD). By comparing the results of the four scenarios, we find that negative-spillover from environmental effort negatively impacts environmental-effort providers and reduces the optimal profit of the manufacturer who provide the environmental effort, which in turn reduces the profit of the entire supply chain. The inter-supply-chain competition also produces a negative incentive for environmental-effort providers but provides a free riding effect on the non-provider, and this effect increases as competition increases. In terms of network externality, the structural change of a supply chain from centralized to decentralized is altruistic, which generates a double-marginalization (i.e., the network externality enhances competitor performance). Furthermore, the leader supply chain with a centralized structure is more willing to provide greater environmental effort, whereas when the leader supply chain structure remains unchanged, its environmental effort depends on the negative-spillover effect and the follower supply chain structure. Therefore, excessive supply chain competition should be avoided, and the negative-spillover effect of environmental effort should be reduced to motivate environmental-effort providers to increase their environmental efforts and promote the development of sustainable green supply chains. Future research should examine retailer-dominated supply chain competition and compare the results with the conclusions of this study.
WANG Jiguang , HU Yushang , WU Yucai . Optimal decision-making considering inter-supply-chain competition and negative-spillover from environmental effort[J]. Regional Sustainability, 2022 , 3(4) : 319 -334 . DOI: 10.1016/j.regsus.2022.11.003
| [1] | Ahi, P., Searcy, C., 2013. A comparative literature analysis of definitions for green and sustainable supply chain management. J. Clean Prod. 52, 329-341. |
| [2] | Azevedo, S.G., Carvalho, H., Machado, V.C., 2011. The influence of green practices on supply chain performance: A case study approach. Transport Res. E-Log. 47(6), 850-871. |
| [3] | Basiri, Z., Heydari, J., 2017. A mathematical model for green supply chain coordination with substitutable products. J. Clean Prod. 145, 232-249. |
| [4] | Bernstein, F., Song, J.S., Zheng, X.N., 2009. Free riding in a multi-channel supply chain. Nav. Res. Log. 56(8), 745-765. |
| [5] | Blalock, G., Veloso, F.M., 2007. Imports, productivity growth, and supply chain learning. World Dev. 35(7), 1134-1151. |
| [6] | Brandenburg, M., Rebs, T., 2015. Sustainable supply chain management: a modeling perspective. Ann. Oper. Res. 229(1), 213-252. |
| [7] | Cao, Y., Tao, L., Wu, K., et al., 2020. Coordinating joint greening efforts in an agri-food supply chain with environmentally sensitive demand. J. Clean Prod. 277, 123883, doi: 10.1016/j.jclepro.2020.123883. |
| [8] | Chen, K.B., Liang, J., Li, J.B., 2012. Information structures and pricing decisions in competing supply chains. J. Syst. Sci. Syst. Eng. 21(2), 226-254. |
| [9] | Chen, X., Zhang, H., Zhang, M., et al., 2017. Optimal decisions in a retailer Stackelberg supply chain. Int. J. Prod. Econ. 187, 260-270. |
| [10] | Christopher, M., 2000. The agile supply chain-Competing in volatile markets. Ind. Market. Manag. 29(1), 37-44. |
| [11] | Costantini, V., Crespi, F., Marin, G., et al., 2017. Eco-innovation, sustainable supply chains and environmental performance in European industries. J. Clean Prod. 155, 141-154. |
| [12] | Das, D., 2018. The impact of sustainable supply chain management practices on firm performance: Lessons from Indian organizations. J. Clean Prod. 203, 179-196. |
| [13] | Fernando, Y., Wah, W.X., 2017. The impact of eco-innovation drivers on environmental performance: Empirical results from the green technology sector in Malaysia. Sustain. Prod. Consump. 12, 27-43. |
| [14] | Galpin, T., Whitttington, J.L., Bell, G., 2015. Is your sustainability strategy sustainable? Creating a culture of sustainability. Corporate Governance-The International Journal of Business in Society. 15(1), 1-17. |
| [15] | Gao, J.H., Han, H.S., Hou, L.T., et al., 2016. Pricing and effort decisions in a closed-loop supply chain under different channel power structures. J. Clean Prod. 112, 2043-2057. |
| [16] | Ge, Z.H., Hu, Q.Y., Xia, Y.S., 2014. Firms’ R&D cooperation behavior in a supply chain. Prod. Oper. Manag. 23(4), 599-609. |
| [17] | Genovese, A., Acquaye, A.A., Figueroa, A., et al., 2017. Sustainable supply chain management and the transition towards a circular economy: Evidence and some applications. Omega-Int. J. Manage. S. 66, 344-357. |
| [18] | Giannakis, M., Papadopoulos, T., 2016. Supply chain sustainability: A risk management approach. Int. J. Prod. Econ. 171(Part 4), 455-470. |
| [19] | Gligor, D., Gligor, N., Holcomb, M., et al., 2019. Distinguishing between the concepts of supply chain agility and resilience: A multidisciplinary literature review. Int. J. Logist Manag. 30(2), 467-487. |
| [20] | Golicic, S.L., Smith, C.D., 2013. A meta-analysis of environmentally sustainable supply chain management practices and firm performance. J. Supply Chain Manag. 49(2), 78-95. |
| [21] | Green, K.W., Zelbst, P.J., Meacham, J., et al., 2012. Green supply chain management practices: impact on performance. Supply Chain Management. 17(3), 290-305. |
| [22] | H?nninen, N., Karjaluoto, H., 2017. Environmental values and customer-perceived value in industrial supplier relationships. J. Clean Prod. 156, 604-613. |
| [23] | Hearnshaw, E.J.S., Wilson, M.M.J., 2013. A complex network approach to supply chain network theory. Int. J. Oper. Prod. Man. 33(3-4), 442-469. |
| [24] | Herczeg, G., Akkerman, R., Hauschild, M.Z., 2018. Supply chain collaboration in industrial symbiosis networks. J. Clean Prod. 171, 1058-1067. |
| [25] | Hong, J.T., Zhang, Y.B., Ding, M.Q., 2018. Sustainable supply chain management practices, supply chain dynamic capabilities, and enterprise performance. J. Clean Prod. 172, 3508-3519. |
| [26] | Isaksson, O.H.D., Simeth, M., Seifert, R.W., 2016. Knowledge spillovers in the supply chain: Evidence from the high tech sectors. Res. Policy. 45(3), 699-706. |
| [27] | Klassen, R.D., Vachon, S., 2003. Collaboration and evaluation in the supply chain: The impact on plant-level environmental investment. Prod. Oper. Manag. 12(3), 336-352. |
| [28] | Kopnina, H., 2018. Education for sustainable development (ESD): the turn away from ‘Environment’ in environmental education? Environ. Educ. Res. 18(5), 699-717. |
| [29] | Kovács, G., 2008. Corporate environmental responsibility in the supply chain. J. Clean Prod. 16(15), 1571-1578. |
| [30] | Li, B., Zhu, M.Y., Jiang, Y.S., et al., 2016. Pricing policies of a competitive dual-channel green supply chain. J. Clean Prod. 112, 2029-2042. |
| [31] | Li, B.X., Zhou, Y.W., Wang, X.Z., 2013. Equilibrium analysis of distribution channel structures under power imbalance and asymmetric information. Int. J. Prod. Res. 51(9), 2698-2714. |
| [32] | Li, J.L., Liu, L.W., 2008. Supply chain coordination with manufacturer’s limited reserve capacity: An extended newsboy problem. Int. J. Prod. Econ. 112(2), 860-868. |
| [33] | Lieder, M., Rashid, A., 2016. Towards circular economy implementation: a comprehensive review in context of manufacturing industry. J. Clean Prod. 115, 36-51. |
| [34] | Lin, M.H., Hu, J.Y., Tseng, M.L., et al., 2016. Sustainable development in technological and vocational higher education: balanced scorecard measures with uncertainty. J. Clean Prod. 120, 1-12. |
| [35] | Martínez-Jurado, P.J., Moyano-Fuentes, J., 2014. Lean management, supply chain management and sustainability: a literature review. J. Clean Prod. 85, 134-150. |
| [36] | Mathiyazhagan, K., Govindan, K., NoorulHaq, A., et al., 2013. An ISM approach for the barrier analysis in implementing green supply chain management. J. Clean Prod. 47, 283-297. |
| [37] | Modak, N.M., Panda, S., Sana, S.S., 2016. Two-echelon supply chain coordination among manufacturer and duopolies retailers with recycling facility. Int. J. Adv. Manuf. Tech. 87(5-8), 1531-1546. |
| [38] | Mudgal, R.K., Shankar, R., Talib, P., et al., 2010. Modelling the barriers of green supply chain practices: an Indian perspective. International Journal of Logistics Systems and Management. 7(1), 81-107. |
| [39] | Niosi, J., Zhegu, M., 2005. Aerospace clusters: local or global knowledge spillovers? Industry and Innovation. 12(1), 5-29. |
| [40] | Olsen, M.C., Slotegraaf, R.J., Chandukala, S.R., 2014. Green claims and message frames: how green new products change brand attitude. J. Marketing. 78(5), 119-137. |
| [41] | Pakseresht, M., Shirazi, B., Mahdavi, I., et al., 2020. Toward sustainable optimization with stackelberg game between green product family and downstream supply chain. Sustain. Prod. Consump. 23, 198-211. |
| [42] | Rajeev, A., Pati, R.K., Padhi, S.S., et al., 2017. Evolution of sustainability in supply chain management: A literature review. J. Clean Prod. 162, 299-314. |
| [43] | Saharidis, G.K.D., Kouikoglou, V.S., Dallery, Y., 2009. Centralized and decentralized control polices for a two-stage stochastic supply chain with subcontracting. Int. J. Prod. Econ. 117(1), 117-126. |
| [44] | Sajjad, A., Eweje, G., Tappin, D., 2015. Sustainable supply chain management: motivators and barriers. Bus. Strateg. Environ. 24(7), 643-655. |
| [45] | Sauvé, S., Bernard, S., Sloan, P., 2016. Environmental sciences, sustainable development and circular economy: Alternative concepts for trans-disciplinary research. Environ. Dev. 17, 48-56. |
| [46] | Silvestre, B.S., 2015. Sustainable supply chain management in emerging economies: Environmental turbulence, institutional voids and sustainability trajectories. Int. J. Prod. Econ. 167, 156-169. |
| [47] | Strezov, V., Evans, A., Evans, T.J., 2017. Assessment of the economic, social and environmental dimensions of the indicators for sustainable development. Sustain. Dev. 25(3), 242-253. |
| [48] | Tallon, P.P., 2011. Value chain linkages and the spillover effect of strategic information technology alignment: a process-level view. J. Manage. Inform. Syst. 28(3), 9-44. |
| [49] | Taylor, T.A., 2002. Supply chain coordination under channel rebates with sales effort effects. Manage. Sci. 48(8), 992-1007. |
| [50] | Testa, F., Iraldo, F., 2010. Shadows and lights of GSCM (green supply chain management): determinants and effects of these practices based on a multi-national study. J. Clean Prod. 18(10-11), 953-962. |
| [51] | Tsay, A.A., Agrawal, N., 2000. Channel dynamics under price and service competition. Manufacturing & Service Operations Management. 2(4), 372-391. |
| [52] | van den Bergh, J.C.J.M., 2010. Externality or sustainability economics? Ecol. Econ. 69(11), 2047-2052. |
| [53] | Walker, H., Di Sisto, L., McBain, D., 2008. Drivers and barriers to environmental supply chain management practices: Lessons from the public and private sectors. J. Purch. Supply Manag. 14(1), 69-85. |
| [54] | Wang, C.X., Wang, W., Huang, R.B., 2017. Supply chain enterprise operations and government carbon tax decisions considering carbon emissions. J. Clean Prod. 152, 271-280. |
| [55] | Wang, J., Dai, J., 2018. Sustainable supply chain management practices and performance. Industrial Management & Data System. 118(1), 2-21. |
| [56] | Wooi, G.C., Zailani, S., 2010. Green supply chain initiatives: investigation on the barriers in the context of SMEs in Malaysia. International Business Management. 4(1), 20-27. |
| [57] | Wu, Y.C., Wang, J.G., Li, C.H., et al., 2018. Optimal supply chain structural choice under horizontal chain-to-chain competition. Sustainability. 10(5), 1330, doi: 10.3390/su10051330. |
| [58] | Xing, D.H., Liu, T.M., 2012. Sales effort free riding and coordination with price match and channel rebate. Eur. J. Oper. Res. 219(2), 264-271. |
| [59] | Xu, L., Wang, C.X., Li, H., 2017. Decision and coordination of low-carbon supply chain considering technological spillover and environmental awareness. Sci. Rep. 7, 3107, doi: 10.1038/s41598-017-03270-2. |
| [60] | Zhang, F.F., Zhang, Z.X., Xue, Y.W., et al., 2020. Dynamic green innovation decision of the supply chain with innovating and free-riding manufacturers: cooperation and spillover. Complexity. 8937847, doi: 10.1155/2020/8937847. |
| [61] | Zhao, F., 2004. Siemens’ business excellence model and sustainable development. Measuring Business Excellence. 8(2), 55-64. |
| [62] | Zhao, X., Shi, C.M., 2011. Structuring and contracting in competing supply chains. Int. J. Prod. Econ. 134(2), 434-446. |
| [63] | Zhu, Q.H., Sarkis, J., Lai, K.H., 2008. Confirmation of a measurement model for green supply chain management practices implementation. Int. J. Prod. Econ. 111(2), 261-273. |
| [64] | Zhu, Q.H., Sarkis, J., Lai, K.H., 2012. Examining the effects of green supply chain management practices and their mediations on performance improvements. Int. J. Prod. Res. 50(5), 1377-1394. |
/
| 〈 |
|
〉 |
REGSUS Wechat
新公网安备 65010402001202号