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Consumer Orientation and Market-Driven Strategies for Promoting Low-Carbon Innovation in Supply Chains: Pathways to Sustainable Development

Author

Listed:
  • Ling Peng

    (School of Management, Guangdong University of Science and Technology, Dongguan 523083, China)

  • Zhen Fan

    (School of Management, Guangdong University of Science and Technology, Dongguan 523083, China)

  • Xuming Zhang

    (School of Management, Guangdong University of Science and Technology, Dongguan 523083, China)

Abstract

As environmental challenges become increasingly pressing, companies are integrating low-carbon innovations into supply chain management to achieve economic performance while promoting environmental sustainability and social responsibility. This study explores how low-carbon innovation in supply chains can be driven by consumer orientation and market-driven strategies, contributing to sustainable development. Using Stackelberg game theory, the study develops centralized and decentralized decision-making models and solves them through differential game methods. Numerical simulations are employed to analyze the impact of consumer preferences for low-carbon products and market strategies on supply chain decisions and overall profitability. The results show that consumer demand for low-carbon products plays a crucial role in driving low-carbon innovation within supply chains. Market strategies, particularly their sensitivity to consumer preferences, significantly influence decision-making processes. Further analysis reveals that the centralized decision-making model offers greater advantages in resource optimization and responsiveness to market shifts, while the decentralized model allows independent decision-making by supply chain participants, balancing competition and co-operation. This enables firms to achieve both economic benefits and reduce their environmental footprint, thereby contributing to sustainable development. This research highlights the importance of aligning consumer demand with market strategies to foster low-carbon innovation. The findings provide valuable theoretical insights and practical strategies to help supply chain companies enhance their competitiveness and contribute to the sustainable development of global supply chains.

Suggested Citation

  • Ling Peng & Zhen Fan & Xuming Zhang, 2025. "Consumer Orientation and Market-Driven Strategies for Promoting Low-Carbon Innovation in Supply Chains: Pathways to Sustainable Development," Sustainability, MDPI, vol. 17(3), pages 1-23, January.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:3:p:1128-:d:1580415
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    References listed on IDEAS

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