IDEAS home Printed from https://ideas.repec.org/a/eee/apmaco/v292y2017icp294-308.html
   My bibliography  Save this article

Competition of domestic manufacturer and foreign supplier under sustainable development objectives of government

Author

Listed:
  • Hafezalkotob, Ashkan

Abstract

Currently, governments that maintain sustainable objectives often adopt financial incentives and deterrents to orchestrate the outsourcing decisions of manufacturers. This work investigates the effect of government financial intervention on the competition and cooperation of two manufacturers. One manufacturer pursues an in-house production strategy, and the other outsources production to a foreign supplier. Regarding the financial, environmental and social objectives of the government and the leadership role of the government in the market, this problem is formulated as a multi-level, multi-objective decision making model. We found that specific boundaries for tariffs set by the government lead to a stable competitive or monopolistic market. A comprehensive analysis of the government policies reveals the possible outcomes of the policies regarding the sustainable objectives.

Suggested Citation

  • Hafezalkotob, Ashkan, 2017. "Competition of domestic manufacturer and foreign supplier under sustainable development objectives of government," Applied Mathematics and Computation, Elsevier, vol. 292(C), pages 294-308.
    • Handle: RePEc:eee:apmaco:v:292:y:2017:i:c:p:294-308
    DOI: 10.1016/j.amc.2016.07.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0096300316304374
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.amc.2016.07.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Buehler, Stefan & Haucap, Justus, 2006. "Strategic outsourcing revisited," Journal of Economic Behavior & Organization, Elsevier, vol. 61(3), pages 325-338, November.
    2. Hanif D. Sherali & Allen L. Soyster & Frederic H. Murphy, 1983. "Stackelberg-Nash-Cournot Equilibria: Characterizations and Computations," Operations Research, INFORMS, vol. 31(2), pages 253-276, April.
    3. Chen, Yenming J. & Sheu, Jiuh-Biing, 2009. "Environmental-regulation pricing strategies for green supply chain management," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(5), pages 667-677, September.
    4. Mitra, Supriya & Webster, Scott, 2008. "Competition in remanufacturing and the effects of government subsidies," International Journal of Production Economics, Elsevier, vol. 111(2), pages 287-298, February.
    5. Sheu, Jiuh-Biing, 2011. "Bargaining framework for competitive green supply chains under governmental financial intervention," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(5), pages 573-592, September.
    6. Xiao, Tiaojun & Yang, Danqin, 2008. "Price and service competition of supply chains with risk-averse retailers under demand uncertainty," International Journal of Production Economics, Elsevier, vol. 114(1), pages 187-200, July.
    7. Richard Cuthbertson & Balkan Cetinkaya & Graham Ewer & Thorsten Klaas-Wissing & Wojciech Piotrowicz & Christoph Tyssen, 2011. "Sustainable Supply Chain Management," Springer Books, Springer, number 978-3-642-12023-7, June.
    8. Xiao, Tiaojun & Chen, Guohua, 2009. "Wholesale pricing and evolutionarily stable strategies of retailers with imperfectly observable objective," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1190-1201, August.
    9. Ni, Debing & Li, Kevin W. & Tang, Xiaowo, 2009. "Production costs, scope economies, and multi-client outsourcing under quantity competition," International Journal of Production Economics, Elsevier, vol. 121(1), pages 130-140, September.
    10. Saif Benjaafar & Ehsan Elahi & Karen L. Donohue, 2007. "Outsourcing via Service Competition," Management Science, INFORMS, vol. 53(2), pages 241-259, February.
    11. Sheu, Jiuh-Biing & Chen, Yenming J., 2012. "Impact of government financial intervention on competition among green supply chains," International Journal of Production Economics, Elsevier, vol. 138(1), pages 201-213.
    12. Elahi, Ehsan, 2013. "Outsourcing through competition: What is the best competition parameter?," International Journal of Production Economics, Elsevier, vol. 144(1), pages 370-382.
    13. McCarthy, Ian & Anagnostou, Angela, 2004. "The impact of outsourcing on the transaction costs and boundaries of manufacturing," International Journal of Production Economics, Elsevier, vol. 88(1), pages 61-71, March.
    14. Gérard P. Cachon & Patrick T. Harker, 2002. "Competition and Outsourcing with Scale Economies," Management Science, INFORMS, vol. 48(10), pages 1314-1333, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wen Cheng & Qunqi Wu & Fei Ye & Qian Li, 2022. "The Impact of Government Interventions and Consumer Green Preferences on the Competition between Green and Nongreen Supply Chains," Sustainability, MDPI, vol. 14(10), pages 1-34, May.
    2. Xie, Lei & Hou, Pengwen & Han, Hongshuai, 2021. "Implications of government subsidy on the vaccine product R&D when the buyer is risk averse," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 146(C).
    3. Sepideh Khalafi & Ashkan Hafezalkotob & Davood Mohammaditabar & Mohammad Kazem Sayadi, 2024. "A game theoretic approach for analyzing financial intervention models in dairy green supply chains with freshness-keeping effort," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 17131-17156, July.
    4. Saeid Rezaei & Reza Maihami, 2020. "Optimizing the sustainable decisions in a multi-echelon closed-loop supply chain of the manufacturing/remanufacturing products with a competitive environment," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(7), pages 6445-6471, October.
    5. Yuyan Wang & Tingting Yu & Rui Zhou, 2022. "The Impact of Legal Recycling Constraints and Carbon Trading Mechanisms on Decision Making in Closed-Loop Supply Chain," IJERPH, MDPI, vol. 19(12), pages 1-26, June.
    6. A. Hafezalkotob & S. Arisian & Raziyeh Reza-Gharehbagh & L. Nersesian, 2023. "Joint Impact of CSR Policy and Market Structure on Environmental Sustainability in Supply Chains," Post-Print hal-04435514, HAL.
    7. Fan, Zhi-Ping & Cao, Yue & Huang, Chun-Yong & Li, Yongli, 2020. "Pricing strategies of domestic and imported electric vehicle manufacturers and the design of government subsidy and tariff policies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    8. Matinfard, Sahar & Yaghoubi, Saeed & Kharaji Manouchehrabadi, Maedeh, 2024. "A coordinated approach for a three-echelon solar-wind energy supply with government intervention," Utilities Policy, Elsevier, vol. 86(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hafezalkotob, Ashkan, 2017. "Competition, cooperation, and coopetition of green supply chains under regulations on energy saving levels," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 228-250.
    2. Abhijit Barman & Rubi Das & Pijus Kanti De & Shib Sankar Sana, 2021. "Optimal Pricing and Greening Strategy in a Competitive Green Supply Chain: Impact of Government Subsidy and Tax Policy," Sustainability, MDPI, vol. 13(16), pages 1-20, August.
    3. Gan Wan & Gang Kou & Tie Li & Feng Xiao & Yang Chen, 2020. "Pricing Policies in a Retailer Stackelberg O2O Green Supply Chain," Sustainability, MDPI, vol. 12(8), pages 1-16, April.
    4. Luo, Jun & Chong, Alain Yee-Loong & Ngai, Eric W.T. & Liu, Martin J., 2014. "Green Supply Chain Collaboration implementation in China: The mediating role of guanxi," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 71(C), pages 98-110.
    5. Xu, Su Xiu & Lu, Qiang & Huang, George Q. & Zhang, Ting, 2013. "Scope economies, market information, and make-or-buy decision under asymmetric information," International Journal of Production Economics, Elsevier, vol. 145(1), pages 339-348.
    6. Pietro De Giovanni & Georges Zaccour, 2022. "A selective survey of game-theoretic models of closed-loop supply chains," Annals of Operations Research, Springer, vol. 314(1), pages 77-116, July.
    7. Lia Nersesian & Ashkan Hafezalkotob & Raziyeh Reza-Gharehbagh, 2023. "Alternative governmental carbon policies on populations of green and non-green supply chains in a competitive market," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 4139-4172, May.
    8. Xiao Jiang & Qiang Hu & Tingyuan Lou & Wenjin Zuo & Jicai Li, 2023. "Impact of Government Environmental Regulations on Remanufacturing Supply Chain with Multi-Subject Responsibility for Recycling and Disposal," Mathematics, MDPI, vol. 11(8), pages 1-19, April.
    9. Pietro Giovanni & Georges Zaccour, 2019. "A selective survey of game-theoretic models of closed-loop supply chains," 4OR, Springer, vol. 17(1), pages 1-44, March.
    10. Dongxue Guo & Yi He & Yuanyuan Wu & Qingyun Xu, 2016. "Analysis of Supply Chain under Different Subsidy Policies of the Government," Sustainability, MDPI, vol. 8(12), pages 1-18, December.
    11. Xiao, Tiaojun & Choi, Tsan-Ming & Cheng, T.C.E., 2016. "Delivery leadtime and channel structure decisions for make-to-order duopoly under different game scenarios," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 113-129.
    12. Sheu, Jiuh-Biing & Gao, Xiao-Qin, 2014. "Alliance or no alliance—Bargaining power in competing reverse supply chains," European Journal of Operational Research, Elsevier, vol. 233(2), pages 313-325.
    13. Luo, Jun & Chong, Alain Yee-Loong & Ngai, Eric W.T. & Liu, Martin J., 2015. "Reprint of “Green Supply Chain Collaboration implementation in China: The mediating role of guanxi”," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 74(C), pages 37-49.
    14. Fatemeh Zand & Saeed Yaghoubi, 2022. "Effects of a dominant retailer on green supply chain activities with government cooperation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(1), pages 1313-1334, January.
    15. Weimin Ma & Ranran Zhang & Shiwei Chai, 2019. "What Drives Green Innovation? A Game Theoretic Analysis of Government Subsidy and Cooperation Contract," Sustainability, MDPI, vol. 11(20), pages 1-24, October.
    16. Huan Zhang & Xinxin Xu & Wei Liu & Zhiyou Jia, 2020. "Green supply chain decision modeling under financial policy, with or without uniform government emission reduction policy," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(6), pages 1040-1056, September.
    17. Gunasekaran, Angappa & Irani, Zahir & Choy, King-Lun & Filippi, Lionel & Papadopoulos, Thanos, 2015. "Performance measures and metrics in outsourcing decisions: A review for research and applications," International Journal of Production Economics, Elsevier, vol. 161(C), pages 153-166.
    18. Deyan Yang & Jinyong Wang & Dongping Song, 2019. "Channel Structure Strategies of Supply Chains with Varying Green Cost and Governmental Interventions," Sustainability, MDPI, vol. 12(1), pages 1-26, December.
    19. Zhai, Yue & Hua, Guowei & Cheng, Meng & Cheng, T.C.E., 2023. "Production lead-time hedging and order allocation in an MTO supply chain," European Journal of Operational Research, Elsevier, vol. 311(3), pages 887-905.
    20. Chen, Yenming J. & Sheu, Jiuh-Biing & Lirn, Taih-Cherng, 2012. "Fault tolerance modeling for an e-waste recycling supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(5), pages 897-906.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:apmaco:v:292:y:2017:i:c:p:294-308. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/applied-mathematics-and-computation .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.