IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v26y2024i11d10.1007_s10668-023-03820-x.html
   My bibliography  Save this article

Green supply chain decision-making and coordination considering consumer's environmental mindset and fairness concerns in the context of sustainable development

Author

Listed:
  • Xiaogang Cao

    (Wuhan Textile University
    Key Research Base of Humanities and Social Sciences in Hubei Province-Enterprise Decision Support Research Center)

  • Meiting Hu

    (Wuhan Textile University)

  • Hui Wen

    (Hubei University of Technology)

  • Kai Huang

    (McMaster University)

Abstract

Based on the environmental protection concept and green needs of consumer in the context of green sustainable development, we study how to enhance the economic benefits of green enterprises under the premise of green, environmental protection and health and create a pure, healthy, and efficient supply chain system, thus promoting the economic development of the whole society. This paper introduces the concepts of consumer environmental awareness and consumer's expectation of product greenness in the green supply chain formed by manufacturer and retailer, and uses a game theory approach to study the interaction between these factors and their impact on the overall efficiency of the upstream and downstream of the supply chain by combining the greenness of products, retail price, and consumer's sensitivity to price; finally, the numerical analysis verifies the reasonableness of the results and draws new conclusions. The study found that the level of greenness, retail price, and total supply chain profit are closely related to consumers’ environmental mindset, which increase as consumer environmental awareness increases but decrease as consumer's expectation of product greenness increases. The profit of each member of the supply chain and the total profit of the supply chain vary with the degree of fairness concerns of the manufacturer, and the strength of consumer environmental awareness also makes the retail price show different trends with the increases in the fairness concerns factor. It can also be found that the level of decision-making and performance of the supply chain members and the whole, as well as the influence of important parameters on the level of decision-making and performance, are different in each of the three models. In addition, cost-sharing contract can enhance cooperation between manufacturer and retailer, achieve Pareto improvement for supply chain members, and improve the operational performance of green businesses. In conclusion, this paper aims to achieve the parallel development of social, environmental, and economic aspects by studying the green supply chain considering the level of product greenness, consumer mentality, fairness concerns, and cost-sharing.

Suggested Citation

  • Xiaogang Cao & Meiting Hu & Hui Wen & Kai Huang, 2024. "Green supply chain decision-making and coordination considering consumer's environmental mindset and fairness concerns in the context of sustainable development," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 28485-28517, November.
  • Handle: RePEc:spr:endesu:v:26:y:2024:i:11:d:10.1007_s10668-023-03820-x
    DOI: 10.1007/s10668-023-03820-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-023-03820-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10668-023-03820-x?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. 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.
    2. Chen, Jingxian & Liang, Liang & Yang, Feng, 2015. "Cooperative quality investment in outsourcing," International Journal of Production Economics, Elsevier, vol. 162(C), pages 174-191.
    3. Wen Jiang & Li Yuan & Lanjun Wu & Shiyue Guo, 2019. "Carbon emission reduction and profit distribution mechanism of construction supply chain with fairness concern and cap-and-trade," PLOS ONE, Public Library of Science, vol. 14(10), pages 1-23, October.
    4. Jun Wang & Rui Ma & Xinman Lu & Baoqin Yu, 2022. "Emission reduction cooperation in a dynamic supply chain with competitive retailers," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(12), pages 14261-14297, December.
    5. Teck-Hua Ho & Juanjuan Zhang, 2008. "Designing Pricing Contracts for Boundedly Rational Customers: Does the Framing of the Fixed Fee Matter?," Management Science, INFORMS, vol. 54(4), pages 686-700, April.
    6. Ghosh, Debabrata & Shah, Janat, 2015. "Supply chain analysis under green sensitive consumer demand and cost sharing contract," International Journal of Production Economics, Elsevier, vol. 164(C), pages 319-329.
    7. Nagarajan, Mahesh & Sosic, Greys, 2008. "Game-theoretic analysis of cooperation among supply chain agents: Review and extensions," European Journal of Operational Research, Elsevier, vol. 187(3), pages 719-745, June.
    8. Shahid Rasool & Aisha Rehman & Roberto Cerchione & Piera Centobelli, 2021. "Evaluating consumer environmental behavior for sustainable development: A confirmatory factor analysis," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(2), pages 318-326, March.
    9. Yong Liu & Zhen-juan Xia & Qian-qian Shi & Qian Xu, 2021. "Pricing and coordination of waste electrical and electronic equipment under third-party recycling in a closed-loop supply chain," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(8), pages 12077-12094, August.
    10. Yuyan Wang & Runjie Fan & Liang Shen & Mingzhou Jin, 2020. "Decisions and coordination of green e-commerce supply chain considering green manufacturer's fairness concerns," International Journal of Production Research, Taylor & Francis Journals, vol. 58(24), pages 7471-7489, December.
    11. Nie, Tengfei & Du, Shaofu, 2017. "Dual-fairness supply chain with quantity discount contracts," European Journal of Operational Research, Elsevier, vol. 258(2), pages 491-500.
    12. Qinzi Xiao & Lin Chen & Ming Xie & Cheng Wang, 2021. "Optimal contract design in sustainable supply chain: Interactive impacts of fairness concern and overconfidence," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 72(7), pages 1505-1524, July.
    13. Qi Zhang & Qiuhong Zhao & Xuan Zhao, 2019. "Manufacturer's product choice in the presence of environment-conscious consumers: brown product or green product," International Journal of Production Research, Taylor & Francis Journals, vol. 57(23), pages 7423-7438, December.
    14. 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.
    15. Hong, Zhaofu & Guo, Xiaolong, 2019. "Green product supply chain contracts considering environmental responsibilities," Omega, Elsevier, vol. 83(C), pages 155-166.
    16. Christoph H. Loch & Yaozhong Wu, 2008. "Social Preferences and Supply Chain Performance: An Experimental Study," Management Science, INFORMS, vol. 54(11), pages 1835-1849, November.
    17. Luyi Gui & Atalay Atasu & Özlem Ergun & L. Beril Toktay, 2018. "Design Incentives Under Collective Extended Producer Responsibility: A Network Perspective," Management Science, INFORMS, vol. 64(11), pages 5083-5104, November.
    18. Donghyuk Jo & Chulhwan Kwon, 2021. "Structure of Green Supply Chain Management for Sustainability of Small and Medium Enterprises," Sustainability, MDPI, vol. 14(1), pages 1-20, December.
    19. Chris K. Y. Lo & Christopher S. Tang & Yi Zhou & Andy C. L. Yeung & Di Fan, 2018. "Environmental Incidents and the Market Value of Firms: An Empirical Investigation in the Chinese Context," Manufacturing & Service Operations Management, INFORMS, vol. 20(3), pages 422-439, July.
    20. Hui Zhang & Xin Su, 2021. "The Applications and Complexity Analysis Based on Supply Chain Enterprises’ Green Behaviors under Evolutionary Game Framework," Sustainability, MDPI, vol. 13(19), pages 1-19, October.
    21. Abhishek Sharma & Deepika Jain, 2021. "Game-Theoretic Analysis of Green Supply Chain Under Cost-Sharing Contract with Fairness Concerns," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 23(02), pages 1-32, June.
    22. 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.
    23. Allah Wasaya & Muhammad Abid Saleem & Jamil Ahmad & Muhammad Nazam & M. Mohsin Ali Khan & Mohammad Ishfaq, 2021. "Impact of green trust and green perceived quality on green purchase intentions: a moderation study," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13418-13435, September.
    24. Torani, Kiran & Rausser, Gordon & Zilberman, David, 2016. "Innovation subsidies versus consumer subsidies: A real options analysis of solar energy," Energy Policy, Elsevier, vol. 92(C), pages 255-269.
    25. Zhou, Yong-Wu & Guo, Jinsen & Zhou, Wenhui, 2018. "Pricing/service strategies for a dual-channel supply chain with free riding and service-cost sharing," International Journal of Production Economics, Elsevier, vol. 196(C), pages 198-210.
    26. Xigang Yuan & Fei Tang & Dalin Zhang & Xiaoqing Zhang, 2021. "Green Remanufacturer’s Mixed Collection Channel Strategy Considering Enterprise’s Environmental Responsibility and the Fairness Concern in Reverse Green Supply Chain," IJERPH, MDPI, vol. 18(7), pages 1-18, March.
    27. Bag, Surajit & Dhamija, Pavitra & Bryde, David J. & Singh, Rajesh Kumar, 2022. "Effect of eco-innovation on green supply chain management, circular economy capability, and performance of small and medium enterprises," Journal of Business Research, Elsevier, vol. 141(C), pages 60-72.
    28. Li Chen & Hau L. Lee, 2017. "Sourcing Under Supplier Responsibility Risk: The Effects of Certification, Audit, and Contingency Payment," Management Science, INFORMS, vol. 63(9), pages 2795-2812, September.
    29. Qiuxiang Li & Mengnan Shi & Yimin Huang, 2019. "A Dynamic Price Game Model in a Low-Carbon, Closed-Loop Supply Chain Considering Return Rates and Fairness Concern Behaviors," IJERPH, MDPI, vol. 16(11), pages 1-21, June.
    30. Yalabik, Baris & Fairchild, Richard J., 2011. "Customer, regulatory, and competitive pressure as drivers of environmental innovation," International Journal of Production Economics, Elsevier, vol. 131(2), pages 519-527, June.
    Full references (including those not matched with items on IDEAS)

    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. Tang, Ruihong & Yang, Lei & Ji, Jingna, 2023. "Impacts of fairness concerns on financing equilibrium in a low-carbon supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 180(C).
    2. 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.
    3. Zhang, Ranran & Ma, Weimin & Si, Hongyun & Liu, Jinjin & Liao, Le, 2021. "Cooperative game analysis of coordination mechanisms under fairness concerns of a green retailer," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    4. Xia, Senmao & Ling, Yantao & de Main, Leanne & Lim, Ming K. & Li, Gendao & Zhang, Peter & Cao, Mengqiu, 2022. "Creating a low carbon economy through green supply chain management: investigation of willingness-to-pay for green products from a consumer’s perspective," LSE Research Online Documents on Economics 116895, London School of Economics and Political Science, LSE Library.
    5. 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).
    6. 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.
    7. Adhikari, Arnab & Bisi, Arnab, 2020. "Collaboration, bargaining, and fairness concern for a green apparel supply chain: An emerging economy perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 135(C).
    8. Yumin Fu & Jianyun Wu & Cheng Ma & Xiaoyu Fu, 2023. "Agency, Reselling, or Hybrid: Strategic Channel Selection in a Green Supply Chain," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    9. Yan Zhang & Wen Zhang, 2023. "Optimal pricing and greening decisions in a supply chain when considering market segmentation," Annals of Operations Research, Springer, vol. 324(1), pages 93-130, May.
    10. Gurmeet Singh & Indranil Biswas & Samir K Srivastava, 2023. "Managing supply chain with green and non‐green products: Channel coordination and information asymmetry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1359-1372, March.
    11. Shengliang Zong & Chunyang Shen, 2023. "Decision-making and coordination in an e-commerce supply chain under channel selection," OPSEARCH, Springer;Operational Research Society of India, vol. 60(1), pages 326-369, March.
    12. 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.
    13. Li, Zhong-Ping & Wang, Jian-Jun & Perera, Sandun & Shi, Jim (Junmin), 2022. "Coordination of a supply chain with Nash bargaining fairness concerns," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 159(C).
    14. Han, Xiaoya & Khouja, Moutaz & Liu, Xin, 2023. "A dynamic model considering consumer green awareness and environmental subsidy," International Journal of Production Economics, Elsevier, vol. 260(C).
    15. 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.
    16. Yuyan Wang & Zhaoqing Yu & Liang Shen & Wenquan Dong, 2021. "E-Commerce Supply Chain Models under Altruistic Preference," Mathematics, MDPI, vol. 9(6), pages 1-19, March.
    17. Zongyu Mu & Yuangang Zheng & Hao Sun, 2021. "Cooperative Green Technology Innovation of an E-Commerce Sales Channel in a Two-Stage Supply Chain," Sustainability, MDPI, vol. 13(13), pages 1-28, July.
    18. 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.
    19. Yuyan Wang & Zhaoqing Yu & Liang Shen & Runjie Fan & Rongyun Tang, 2021. "Decisions and Coordination in E-Commerce Supply Chain under Logistics Outsourcing and Altruistic Preferences," Mathematics, MDPI, vol. 9(3), pages 1-23, January.
    20. Linghong Zhang & Bowen Xue & Xiyu Liu, 2018. "Carbon Emission Reduction with Regard to Retailer’s Fairness Concern and Subsidies," Sustainability, MDPI, vol. 10(4), pages 1-28, April.

    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:spr:endesu:v:26:y:2024:i:11:d:10.1007_s10668-023-03820-x. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.