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Dynamic Green Innovation Decision of the Supply Chain with Innovating and Free-Riding Manufacturers: Cooperation and Spillover

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  • Feifei Zhang
  • Zaixu Zhang
  • Yawei Xue
  • Jian Zhang
  • Yang Che

Abstract

Green innovation for supply chain has attracted much academic attention. Yet, there is no adequate understanding of how spillover and cooperation can impact the enterprises’ green innovation decisions in the presence of free-rider. Besides, the dynamic impact of green innovation on emission is still lack of attention. We develop a differential game model that explicitly considers a supply chain with two types of manufacturers (i.e., green innovation and free-riding) to examine the dynamics of green innovation. The analysis reveals that under the noncooperation mode, the emissions and profits of free-riding manufacturers are found to be lower than that of innovating manufacturers, but technology spillovers will narrow the gap between them. Under the cooperation mode, there would be greater innovation efforts of green manufacturers and lesser efforts of green suppliers. Moreover, technology spillovers will have less impact on optimal decision changes. The profit of free-riding manufacturers is higher than that of innovating manufacturers, but the initial market power will affect the changes in their sales and profits. Meanwhile, cooperation will increase the total emission amount and long-term profits of the green supply chain, and technology spillovers of green manufacturers will help narrow the emission gap and broaden the profit gap, while that of the suppliers will have the opposite effect. The present study provides a new perspective for research on green innovation decisions for supply chain.

Suggested Citation

  • Feifei Zhang & Zaixu Zhang & Yawei Xue & Jian Zhang & Yang Che, 2020. "Dynamic Green Innovation Decision of the Supply Chain with Innovating and Free-Riding Manufacturers: Cooperation and Spillover," Complexity, Hindawi, vol. 2020, pages 1-17, July.
    • Handle: RePEc:hin:complx:8937847
    DOI: 10.1155/2020/8937847
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    Cited by:

    1. Arkadiusz Świadek & Jadwiga Gorączkowska & Karolina Godzisz, 2021. "Conditions Driving Low-Carbon Innovation in a Medium-Sized European Country That Is Catching Up–Case Study of Poland," Energies, MDPI, vol. 14(7), pages 1-17, April.
    2. Taiguang Gao & Kui Wang & Yali Mei & Shan He & Yanfang Wang, 2022. "Supply Chain Pricing Models Considering Risk Attitudes under Free-Riding Behavior," Mathematics, MDPI, vol. 10(10), pages 1-22, May.
    3. Chauhan, Chetna & Kaur, Puneet & Arrawatia, Rakesh & Ractham, Peter & Dhir, Amandeep, 2022. "Supply chain collaboration and sustainable development goals (SDGs). Teamwork makes achieving SDGs dream work," Journal of Business Research, Elsevier, vol. 147(C), pages 290-307.
    4. Kevin Riehl & Florian Kiesel & Dirk Schiereck, 2022. "Political and Socioeconomic Factors That Determine the Financial Outcome of Successful Green Innovation," Sustainability, MDPI, vol. 14(6), pages 1-23, March.
    5. Lei Song & Qi Xin & Huilin Chen & Lutao Liao & Zheyi Chen, 2023. "Optimal Decision-Making of Retailer-Led Dual-Channel Green Supply Chain with Fairness Concerns under Government Subsidies," Mathematics, MDPI, vol. 11(2), pages 1-16, January.
    6. Riehl, Kevin & Kiesel, Florian & Schiereck, Dirk, 2022. "Political and Socioeconomic Factors That Determine the Financial Outcome of Successful Green Innovation," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 132099, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).

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