IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v26y2024i7d10.1007_s10668-023-03371-1.html
   My bibliography  Save this article

Low-carbon strategies in the alliance between manufacturer and weak customer considering different contracts

Author

Listed:
  • Yafei Zu

    (Nanjing University of Science and Technology)

  • Fengyi Li

    (Nanjing University of Science and Technology)

  • Yinfei Xu

    (Southeast University)

  • Hui Zhang

    (Inspur Academy of Science and Technology)

Abstract

With the rise of influential customers and environmental issues, this paper studies the alliance effect of the manufacturer and its weak customers by differential Stackelberg game. Low-carbon production and dynamic pricing strategies are analyzed in alliance and no-alliance situations. The results find that forming an alliance between the manufacturer and its weaker customer helps them resist the advantages of a stronger retailer. Compared to the no-alliance strategy, the alliance strategy will decrease their profits. The stronger customer needs to set a lower retail price toward the alliance between the manufacturer and the weak customer. And it can narrow the price gap in two situations by increasing its proportion of sales revenue. Moreover, when consumers care less about the product's environmental problems, all the partner firms in the supply chain will price lower and make fewer efforts on low-carbon production.

Suggested Citation

  • Yafei Zu & Fengyi Li & Yinfei Xu & Hui Zhang, 2024. "Low-carbon strategies in the alliance between manufacturer and weak customer considering different contracts," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 17941-17965, July.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:7:d:10.1007_s10668-023-03371-1
    DOI: 10.1007/s10668-023-03371-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-023-03371-1
    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/s10668-023-03371-1?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. Gérard P. Cachon & A. Gürhan Kök, 2010. "Competing Manufacturers in a Retail Supply Chain: On Contractual Form and Coordination," Management Science, INFORMS, vol. 56(3), pages 571-589, March.
    2. Marshall Fisher & Santiago Gallino & Jun Li, 2018. "Competition-Based Dynamic Pricing in Online Retailing: A Methodology Validated with Field Experiments," Management Science, INFORMS, vol. 64(6), pages 2496-2514, June.
    3. Chee Yew Wong & Christina W.Y. Wong & Sakun Boon-itt, 2020. "Effects of green supply chain integration and green innovation on environmental and cost performance," International Journal of Production Research, Taylor & Francis Journals, vol. 58(15), pages 4589-4609, July.
    4. Sato, Kimitoshi & Sawaki, Katsushige, 2013. "A continuous-time dynamic pricing model knowing the competitor’s pricing strategy," European Journal of Operational Research, Elsevier, vol. 229(1), pages 223-229.
    5. Usama Awan & Amira Khattak & Sajeela Rabbani & Amandeep Dhir, 2020. "Buyer-Driven Knowledge Transfer Activities to Enhance Organizational Sustainability of Suppliers," Sustainability, MDPI, vol. 12(7), pages 1-14, April.
    6. Usama Awan, 2019. "Impact of social supply chain practices on social sustainability performance in manufacturing firms," International Journal of Innovation and Sustainable Development, Inderscience Enterprises Ltd, vol. 13(2), pages 198-219.
    7. Usama Awan & Andrzej Kraslawski & Janne Huiskonen, 2018. "Buyer-supplier relationship on social sustainability: Moderation analysis of cultural intelligence," Cogent Business & Management, Taylor & Francis Journals, vol. 5(1), pages 1429346-142, January.
    8. Jin, Yannan & Wang, Sujuan & Hu, Qiying, 2015. "Contract type and decision right of sales promotion in supply chain management with a capital constrained retailer," European Journal of Operational Research, Elsevier, vol. 240(2), pages 415-424.
    9. De Giovanni, Pietro & Karray, Salma & Martín-Herrán, Guiomar, 2019. "Vendor Management Inventory with consignment contracts and the benefits of cooperative advertising," European Journal of Operational Research, Elsevier, vol. 272(2), pages 465-480.
    10. Liu, Jingchen & Zhai, Xin & Chen, Lihua, 2019. "Optimal pricing strategy under trade-in program in the presence of strategic consumers," Omega, Elsevier, vol. 84(C), pages 1-17.
    11. Dye, Chung-Yuan, 2020. "Optimal joint dynamic pricing, advertising and inventory control model for perishable items with psychic stock effect," European Journal of Operational Research, Elsevier, vol. 283(2), pages 576-587.
    12. Lihao Lu & Qinglong Gou & Wansheng Tang & Jianxiong Zhang, 2016. "Joint pricing and advertising strategy with reference price effect," International Journal of Production Research, Taylor & Francis Journals, vol. 54(17), pages 5250-5270, September.
    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. Lin, Xuxun & Wang, Haiyan, 2022. "Dynamic pricing for online information services considering service duration and quality level," Omega, Elsevier, vol. 109(C).
    2. Xin Yun & Hao Liu & Yi Li & Kin Keung Lai, 2023. "Contract design under asymmetric demand information for sustainable supply chain practices," Annals of Operations Research, Springer, vol. 324(1), pages 1429-1459, May.
    3. Gou, Qinglong & Shao, Jing & Wang, Xin & Yu, Lili, 2020. "Co-op supply chains with a local media company: Models and analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    4. Ma, Shigui & He, Yong & Gu, Ran, 2021. "Joint service, pricing and advertising strategies with tourists’ green tourism experience in a tourism supply chain," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    5. Niu, Baozhuang & Jin, Delong & Pu, Xujin, 2016. "Coordination of channel members’ efforts and utilities in contract farming operations," European Journal of Operational Research, Elsevier, vol. 255(3), pages 869-883.
    6. Yongyi Zhou & Yulin Zhang & Mark Goh, 2021. "Choice of pricing and advertising schemes for a two‐sided platform," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(7), pages 1865-1885, October.
    7. Li, Mengmeng & Mizuno, Shinji, 2022. "Comparison of dynamic and static pricing strategies in a dual-channel supply chain with inventory control," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    8. Rui Guo & Zhenyong Wu, 2023. "Social sustainable supply chain performance assessment using hybrid fuzzy-AHP–DEMATEL–VIKOR: a case study in manufacturing enterprises," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 12273-12301, November.
    9. 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.
    10. Vivek Agrawal & Rajendra P. Mohanty & Sucheta Agarwal & Jitendra Kumar Dixit & Anand M. Agrawal, 2023. "Analyzing critical success factors for sustainable green supply chain management," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8233-8258, August.
    11. Usama Awan & Marlen Gabriele Arnold & Ismail Gölgeci, 2021. "Enhancing green product and process innovation: Towards an integrative framework of knowledge acquisition and environmental investment," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1283-1295, February.
    12. Chen, Xingli & Zhou, Jianheng, 2021. "The complexity analysis and chaos control in omni-channel supply chain with consumer migration and advertising cost sharing," Chaos, Solitons & Fractals, Elsevier, vol. 146(C).
    13. Guojun Ji & Zhongfeng Sun & Kim Hua Tan, 2021. "Collaborative Rebate Strategy of Business-to-Customer Platforms Considering Recycling and Trade-Ins Simultaneously," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    14. Pyung-Hoi Koo, 2022. "A Capacity Cost-Sharing Contract for a Two-Stage Supply Chain with a Risk-Averse Supplier under a Bargaining Power," Sustainability, MDPI, vol. 14(4), pages 1-17, February.
    15. Chen, Xu & Li, Shanshan & Wang, Xiaojun, 2020. "Evaluating the effects of quality regulations on the pharmaceutical supply chain," International Journal of Production Economics, Elsevier, vol. 230(C).
    16. Gandomi, Amir & Zolfaghari, Saeed, 2018. "To tier or not to tier: An analysis of multitier loyalty programs׳ optimality conditions," Omega, Elsevier, vol. 74(C), pages 20-36.
    17. Licheng Yang & Shijie Song & Chunlin Liu, 2024. "Green signals: The impact of environmental protection support policies on firms' green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3258-3278, May.
    18. Hu, Jing & Hu, Qiying & Xia, Yusen, 2019. "Who should invest in cost reduction in supply chains?," International Journal of Production Economics, Elsevier, vol. 207(C), pages 1-18.
    19. Taiwen Feng & Hongyan Sheng, 2023. "Identifying the equifinal configurations of prompting green supply chain integration and subsequent performance outcome," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5234-5251, December.
    20. Syed Abdul Rehman Khan & Arsalan Zahid Piprani & Zhang Yu, 2022. "Digital technology and circular economy practices: future of supply chains," Operations Management Research, Springer, vol. 15(3), pages 676-688, December.

    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:7:d:10.1007_s10668-023-03371-1. 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.