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

Author

Listed:
  • Qian Li

    (School of Economics and Management, Chang’an University, Xi’an 710064, China)

  • Yuanfei Kang

    (Massey Business School, Massey University, Auckland 0745, New Zealand)

  • Lingling Tan

    (School of Modern Post, Xi’an University of Posts and Telecommunications, Xi’an 710061, China)

  • Bo Chen

    (School of Economics and Management, Chang’an University, Xi’an 710064, China)

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.

Suggested Citation

  • Qian Li & Yuanfei Kang & Lingling Tan & Bo Chen, 2020. "Modeling Formation and Operation of Collaborative Green Innovation between Manufacturer and Supplier: A Game Theory Approach," Sustainability, MDPI, vol. 12(6), pages 1-20, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2209-:d:331779
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    References listed on IDEAS

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    Cited by:

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    2. Esmaelnezhad, Danial & Taghizadeh-Yazdi, Mohammadreza & Amoozad Mahdiraji, Hannan & Vrontis, Demetris, 2023. "International strategic alliances for collaborative product Innovation: An agent-based scenario analysis in biopharmaceutical industry," Journal of Business Research, Elsevier, vol. 158(C).
    3. Izabela Nielsen & Sani Majumder & Eryk Szwarc & Subrata Saha, 2020. "Impact of Strategic Cooperation under Competition on Green Product Manufacturing," Sustainability, MDPI, vol. 12(24), pages 1-28, December.
    4. Ruifeng Hu & Weiqiao Xu & Yalin Yang & Guangxian Ni, 2024. "A Combined Scientometric and Meta-analysis Exploration of Eco-innovation: Evolution and Determinants," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 3174-3201, March.
    5. Nora Wang & Chieh-Ning Hung, 2023. "Competitive Firms’ Optimal Decisions on Entering Accessory Market," Sustainability, MDPI, vol. 15(15), pages 1-20, July.
    6. Mo Li & Hua Dong & Haochen Yu & Xiaoqi Sun & Huijuan Zhao, 2023. "Evolutionary Game and Simulation of Collaborative Green Innovation in Supply Chain under Digital Enablement," Sustainability, MDPI, vol. 15(4), pages 1-17, February.

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