IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i14p8884-d867212.html
   My bibliography  Save this article

Selection Strategy and Coordination of Green Product R&D in Sustainable Competitive Supply Chain

Author

Listed:
  • Qinghua Feng

    (School of Information, Xi’an University of Finance and Economics, Xi’an 710100, China)

  • Tong Liu

    (School of Information, Xi’an University of Finance and Economics, Xi’an 710100, China)

Abstract

Green product R&D is a necessary measure for enterprises to achieve sustainable development. This paper studies the optimal selection strategy of green product R&D and the impact of price competition and green R&D cost on prices, green levels, and enterprise profits in the sustainable competitive supply chain. We establish manufacturer-led game models and compare the equilibrium results of green R&D strategies. The study found that three types of green product R&D strategies exist in competitive supply chains: neither conduct green product R&D (NN), only one supply chain conducts green product R&D (YN), and both conduct green product R&D (YY). Price competition intensity and green R&D cost have a negative impact on prices, green levels, and enterprise profits. Wholesale prices, retail prices, green levels, and enterprise profits are highest in YY strategy, but they are lowest in NN strategy. When one supply chain does not conduct green product R&D, the other supply chain will choose green product R&D only if the green R&D cost meets certain condition. When one supply chain conducts green product R&D, the optimal choice for the other supply chain is always to conduct green product R&D. For the optimal selection strategies, applying two-part pricing contracts achieve supply chain coordination. Our research results provide a reference for the strategic choice of green product R&D in competitive supply chains.

Suggested Citation

  • Qinghua Feng & Tong Liu, 2022. "Selection Strategy and Coordination of Green Product R&D in Sustainable Competitive Supply Chain," Sustainability, MDPI, vol. 14(14), pages 1-22, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8884-:d:867212
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/14/8884/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/14/8884/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Song, Shuang & Govindan, Kannan & Xu, Lei & Du, Peng & Qiao, Xiaojiao, 2017. "Capacity and production planning with carbon emission constraints," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 132-150.
    2. Zhu, Wenge & He, Yuanjie, 2017. "Green product design in supply chains under competition," European Journal of Operational Research, Elsevier, vol. 258(1), pages 165-180.
    3. Zhang, Linghong & Wang, Jingguo & You, Jianxin, 2015. "Consumer environmental awareness and channel coordination with two substitutable products," European Journal of Operational Research, Elsevier, vol. 241(1), pages 63-73.
    4. Guan, Zili & Zhang, Xumei & Zhou, Maosen & Dan, Yiran, 2020. "Demand information sharing in competing supply chains with manufacturer-provided service," International Journal of Production Economics, Elsevier, vol. 220(C).
    5. 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.
    6. Jafar Heydari & Kannan Govindan & Zahra Basiri, 2021. "Balancing price and green quality in presence of consumer environmental awareness: a green supply chain coordination approach," International Journal of Production Research, Taylor & Francis Journals, vol. 59(7), pages 1957-1975, April.
    7. Hong, Zhaofu & Guo, Xiaolong, 2019. "Green product supply chain contracts considering environmental responsibilities," Omega, Elsevier, vol. 83(C), pages 155-166.
    8. Maher Agi & Xinghao Yan, 2020. "Greening products in a supply chain under market segmentation and different channel power structures," Post-Print hal-02898158, HAL.
    9. Guo, Shu & Choi, Tsan-Ming & Shen, Bin, 2020. "Green product development under competition: A study of the fashion apparel industry," European Journal of Operational Research, Elsevier, vol. 280(2), pages 523-538.
    10. Hong, Zhaofu & Wang, Hao & Yu, Yugang, 2018. "Green product pricing with non-green product reference," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 115(C), pages 1-15.
    11. Ciwei Dong & Bin Shen & Pui-Sze Chow & Liu Yang & Chi To Ng, 2016. "Sustainability investment under cap-and-trade regulation," Annals of Operations Research, Springer, vol. 240(2), pages 509-531, May.
    12. Seung Jae Park & Gérard P. Cachon & Guoming Lai & Sridhar Seshadri, 2015. "Supply Chain Design and Carbon Penalty: Monopoly vs. Monopolistic Competition," Production and Operations Management, Production and Operations Management Society, vol. 24(9), pages 1494-1508, September.
    13. Jingqi Wang & Hyoduk Shin, 2015. "The Impact of Contracts and Competition on Upstream Innovation in a Supply Chain," Production and Operations Management, Production and Operations Management Society, vol. 24(1), pages 134-146, January.
    14. Yu, Yugang & Han, Xiaoya & Hu, Guiping, 2016. "Optimal production for manufacturers considering consumer environmental awareness and green subsidies," International Journal of Production Economics, Elsevier, vol. 182(C), pages 397-408.
    15. Feng Yang & Junjun Kong & Tianzhuo Liu & Sheng Ang, 2022. "Cooperation and coordination in green supply chain with R&D uncertainty," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 73(3), pages 481-496, March.
    16. Grimmer, Martin & Bingham, Timothy, 2013. "Company environmental performance and consumer purchase intentions," Journal of Business Research, Elsevier, vol. 66(10), pages 1945-1953.
    17. Yanyan Zheng & Tong Shu & Shouyang Wang & Shou Chen & Kin Keung Lai & Lu Gan, 2018. "Analysis of product return rate and price competition in two supply chains," Operational Research, Springer, vol. 18(2), pages 469-496, July.
    18. Liu, Lu & Feng, Lipan & Jiang, Tao & Zhang, Qian, 2021. "The impact of supply chain competition on the introduction of clean development mechanisms," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    19. Agi, Maher A.N. & Yan, Xinghao, 2020. "Greening products in a supply chain under market segmentation and different channel power structures," International Journal of Production Economics, Elsevier, vol. 223(C).
    20. Xu, Xiaoping & He, Ping & Xu, Hao & Zhang, Quanpeng, 2017. "Supply chain coordination with green technology under cap-and-trade regulation," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 433-442.
    21. Chen, Xu & Wang, Xiaojun & Zhou, Mingmei, 2019. "Firms’ green R&D cooperation behaviour in a supply chain: Technological spillover, power and coordination," International Journal of Production Economics, Elsevier, vol. 218(C), pages 118-134.
    22. Dong, Ciwei & Liu, Qingyu & Shen, Bin, 2019. "To be or not to be green? Strategic investment for green product development in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 193-227.
    23. Li, Wei & Chen, Jing, 2018. "Pricing and quality competition in a brand-differentiated supply chain," International Journal of Production Economics, Elsevier, vol. 202(C), pages 97-108.
    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. Muhammad Babar Shahzad & Imran Bashir Dar & Raniyah Wazirali, 2023. "The Fear of the Known and Unknown in Being the Sustainable Business: Environmental Concern Reflected by Axfood (Sweden)," Sustainability, MDPI, vol. 15(6), pages 1-9, March.
    2. Shuiwang Zhang & Qianlan Ding & Jingcheng Ding, 2023. "Return Strategy of E-Commerce Platform Based on Green and Sustainable Development," Sustainability, MDPI, vol. 15(14), pages 1-18, July.
    3. Lixi Zhou & Tijun Fan & Jie Yang & Lihao Zhang, 2022. "Monopolistic vs. Competitive Supply Chain Concerning Selection of the Platform Selling Mode in Three Power Structures," Sustainability, MDPI, vol. 14(17), pages 1-27, September.

    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. Kelei Xue & Guohua Sun & Yuyan Wang & Shuiye Niu, 2021. "Optimal Pricing and Green Product Design Strategies in a Sustainable Supply Chain Considering Government Subsidy and Different Channel Power Structures," Sustainability, MDPI, vol. 13(22), pages 1-26, November.
    2. Wang, Min & Huang, Hongfu & Liu, Feng, 2023. "To adapt or to standardize? Cross-market green product design under parallel importation impact," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 174(C).
    3. Chen, Wenbo, 2018. "Retailer-driven carbon emission abatement with consumer environmental awareness and carbon tax: Revenue-sharing versus Cost-sharingAuthor-Name: Yang, Huixiao," Omega, Elsevier, vol. 78(C), pages 179-191.
    4. Cai, Jianhu & Sun, Haining & Shang, Jennifer & Hegde, Gajanan G., 2023. "Information structure selection in a green supply chain: Impacts of wholesale price and greenness level," European Journal of Operational Research, Elsevier, vol. 306(1), pages 34-46.
    5. Ma, Xueli & Mao, Jinyue & Luo, Qian & Bai, Qingguo, 2024. "Effects of information superiority and green optimism on green supply chains under different power structures," International Journal of Production Economics, Elsevier, vol. 268(C).
    6. Liu, Samuel Shuai & Hua, Guowei & Ma, Benedict Jun & Cheng, T.C.E., 2023. "Competition between green and non-green products in the blockchain era," International Journal of Production Economics, Elsevier, vol. 264(C).
    7. Yang, Huixiao & Luo, Jianwen & Wang, Haijun, 2017. "The role of revenue sharing and first-mover advantage in emission abatement with carbon tax and consumer environmental awareness," International Journal of Production Economics, Elsevier, vol. 193(C), pages 691-702.
    8. Zongyu Mu & Qiujie Li & Gengxin Dai & Ke Li & Guangming Zhang & Fan Zhang, 2022. "Government Subsidy Policy and Online Selling Strategy in a Platform Supply Chain with Green R&D and DDM Activities," Sustainability, MDPI, vol. 14(15), pages 1-23, August.
    9. Jiguang Wang & Jianhong Chang & Yucai Wu, 2020. "The Optimal Production Decision of Competing Supply Chains When Considering Green Degree: A Game-Theoretic Approach," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
    10. Mukherjee, Arka & Carvalho, Margarida, 2021. "Dynamic decision making in a mixed market under cooperation: Towards sustainability," International Journal of Production Economics, Elsevier, vol. 241(C).
    11. Li, Jin & Wang, Haoyu & Shi, Victor & Sun, Qi, 2024. "Manufacturer's choice of online selling format in a dual-channel supply chain with green products," European Journal of Operational Research, Elsevier, vol. 318(1), pages 131-142.
    12. Zolfagharinia, Hossein & Zangiabadi, Maryam & Hafezi, Maryam, 2023. "How much is enough? Government subsidies in supporting green product development," European Journal of Operational Research, Elsevier, vol. 309(3), pages 1316-1333.
    13. 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.
    14. Ren, Da & Guo, Rui & Lan, Yanfei & Shang, Changjing, 2021. "Shareholding strategies for selling green products on online platforms in a two-echelon supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    15. Hanli Hu & Yu Cao & Dan Yi & Qingsong Li, 2023. "How to Distribute Green Products in Competition with Brown Products? Direct Selling versus Agent Selling?," Sustainability, MDPI, vol. 15(14), pages 1-22, July.
    16. Junbin Wang & Xuan Gao & Zhiguo Wang, 2021. "Sustainable Supply Chain Decisions under E-Commerce Platform Marketplace with Competition," Sustainability, MDPI, vol. 13(8), pages 1-23, April.
    17. Li, Guo & Wu, Huamin & Sethi, Suresh P. & Zhang, Xiang, 2021. "Contracting green product supply chains considering marketing efforts in the circular economy era," International Journal of Production Economics, Elsevier, vol. 234(C).
    18. Lai, Zhixuan & Lou, Gaoxiang & Ma, Haicheng & Chung, Sai-Ho & Wen, Xin & Fan, Tijun, 2022. "Optimal green supply chain financing strategy: Internal collaborative financing and external investments," International Journal of Production Economics, Elsevier, vol. 253(C).
    19. Dong, Ciwei & Liu, Qingyu & Shen, Bin, 2019. "To be or not to be green? Strategic investment for green product development in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 193-227.
    20. Chirantan Mondal & Bibhas C. Giri, 2022. "Analyzing a manufacturer-retailer sustainable supply chain under cap-and-trade policy and revenue sharing contract," Operational Research, Springer, vol. 22(4), pages 4057-4092, September.

    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:gam:jsusta:v:14:y:2022:i:14:p:8884-:d:867212. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.