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Two‐period supply chain coordination strategies with ambidextrous sustainable innovations

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  • Patanjal Kumar
  • Suresh Kumar Jakhar
  • Arijit Bhattacharya

Abstract

This study considers a manufacturer with ambidextrous sustainable innovation capability selling products in environmentally conscious market through an independent retailer in a two‐period game setting. We design a two‐period game theoretic and dyadic supply chain (SC) model considering exploitative and exploratory nature of environmental innovations. We study five different contract types, namely, wholesale price contract, vertical Nash game structure, cost sharing contract, revenue sharing contract and two‐part tariff contract. We demonstrate the impact of market sensitivity towards sustainable innovation and cost parameters on optimal level of decision parameters. The equilibrium results reveal that a suitably designed two‐part tariff contract can be used to achieve coordination in a fragmented SC. The equilibrium results assist managers to optimise the SC based on the two‐period contract model. The results obtained in this study can help the decision‐makers to take decisions on investment in the ambidextrous sustainable innovation under different types of contract structures.

Suggested Citation

  • Patanjal Kumar & Suresh Kumar Jakhar & Arijit Bhattacharya, 2021. "Two‐period supply chain coordination strategies with ambidextrous sustainable innovations," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 2980-2995, November.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:7:p:2980-2995
    DOI: 10.1002/bse.2783
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    1. Syed Abdul Rehman Khan & Asif Razzaq & Zhang Yu & Sharon Miller, 2021. "Retracted: Industry 4.0 and circular economy practices: A new era business strategies for environmental sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4001-4014, December.
    2. Zhang Yu & Syed Abdul Rehman Khan & Muhammad Umar, 2022. "Circular economy practices and industry 4.0 technologies: A strategic move of automobile industry," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 796-809, March.

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