Cooperation and coordination in green supply chain with R&amp;D uncertainty

Yang, Feng; Kong, Junjun; Liu, Tianzhuo; Ang, Sheng

doi:10.1080/01605682.2020.1848359

Cited by 39 publications

(21 citation statements)

References 53 publications

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“…According to Younis et al (2020), investment in R&D leads to improved GSCM performance. According to Yang et al (2020), manufacturers should invest significantly in R&D activities to green their operations and reduce pollutant emissions during the manufacturing process. The above analysis indicates that key findings of this research are in alignment with previous research carried out in the field of GSCM.…”

Section: Sensitivity Analysismentioning

confidence: 99%

Strategic sourcing model for green supply chain management: an insight into automobile manufacturing units in India

Ghosh

Mandal

Ray

2021

BIJ

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PurposeSupplier selection (SS) is one of the prime competencies in a sourcing decision. Taking into account the key role played by suppliers in facilitating the implementation of green supply chain management (GSCM), it is somewhat surprising that very little research attention has been imparted to the development of a strategic sourcing model for GSCM. This research aims to develop a strategic sourcing framework in which supplier organizations are prioritized and ranked based on their GSCM performance. Accordingly, the benchmark organization is identified and its strategy is explored for GSCM performance improvement.Design/methodology/approachThe research develops an innovative GSCM performance evaluation framework using six parameters, namely, investment in corporate social responsibility, investment in research and development, utilization of renewable energy, total energy consumption, total carbon-di-oxide emissions and total waste generation. An integrated multicriteria decision-making (MCDM) approach is proposed in which the entropy method calculates criteria weights. The Complex Proportional Assessment (COPRAS) and the Grey relational analysis (GRA) methods are used to rank supplier organizations based on their performance scores. A real-world case of green supplier selection (GSS) is considered in which five leading India-based automobile manufacturing organizations (Supplier 1, Supplier 2, Supplier 3, Supplier 4 and Supplier 5) are selected. Surveys with industry experts at the strategic, tactical, and operational levels are carried out to collect relevant data.FindingsThe results reveal that total carbon dioxide emission is the most influential parameter, as it gains the highest weight. On the contrary, investment in research and development, and total waste generation have no significant impact on GSCM performance. Results show that Supplier 5 secures the top rank. Hence, it is the benchmark organization.Research limitations/implicationsThe proposed methodology offers an easy and comprehensive approach to sourcing decisions in the field of GSCM. The entropy weight-based COPRAS and GRA methods offer an error-free channel of decision-making and can be proficiently used to outrank various industrial sectors based on their GSCM performances. This research is specific to the automobile manufacturing supply chain. Therefore, research outcomes may vary across supply chains with distinct characteristics.Practical implicationsThe basic propositions of this research are based on a real-world case. Hence, the research findings are practically feasible. The less significant parameters identified in this study would enable managers to impart more attention to vulnerable areas for improvement. This research may help policymakers identify the influential parameters for effective GSCM implementation. As this research considers all aspects of sustainability, the strategies of the benchmark supplier have a direct impact on organizations' overall sustainability. The study would enable practitioners to make various strategies for GSCM performance improvement and to develop a cleaner production system.Originality/valueThe originality of this research lies in the consideration of both economic, social, environmental and operational aspects of sustainability for assessing the GSCM performance of supplier organizations. Quantitative criteria are considered so that vagueness can be removed from the decision. The use of an integrated grey-based approach for developing a strategic sourcing model is another unique feature of this study.

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Section: Sensitivity Analysismentioning

confidence: 99%

Strategic sourcing model for green supply chain management: an insight into automobile manufacturing units in India

Ghosh

Mandal

Ray

2021

BIJ

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“…As Cosimato and Troisi [ 28 ] pointed out that green related technologies play an important role for firms to gain competitive advantage. Hence, Yang et al [ 29 ] considered the effects of joint green R&D between supplier-manufacturers on market demand from the perspective of time dynamics. Based on the results, they compared and analyzed R&D strategies under wholesale price contracts, revenue sharing contracts and centralized decision-making conditions.…”

Section: Literature Reviewmentioning

confidence: 99%

The Effect of a Supplier’s Eco-Design on the Economic Benefits of a Supply Chain and Associated Coordination

Liu

Geng

Chen

et al. 2021

IJERPH

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The eco-design of upstream suppliers can reduce the environmental impact from the production process for downstream customers. To analyze the effect of suppliers’ eco-design on the economic benefits of up-downstream supply chain and the mechanisms, this study constructed a master–slave game theory model for a supplier and a manufacturer. Based on this game theory model, this study comparatively analyzes the effects on raw material/part prices, retail product prices, sale volume, revenue, and eco-design effort level under three conditions (no eco-design, decentralized decision-making with eco-design, centralized decision-making with eco-design). And to further analyze the effect of eco-design costs on the optimal solution, this article takes the supply chain of tire production as an example. This analysis could provide suggestions for the suppliers and manufacturers to develop and improve their eco-design. The main results are as follows: the supplier eco-design is beneficial to improving the overall economic benefits for suppliers and manufacturers under certain conditions, and the range in which a supplier is willing to implement eco-design in a decentralized decision-making situation is wider than that in a centralized decision-making situation; when a supplier implements an eco-design, it will transfer part of the cost to the manufacturer by raising the unit raw material/parts prices. Meanwhile, the manufacturer can reduce the production cost when the benefit of eco-design is more than the increased purchasing price, and they can decrease the retail price to expand the sales volume. Hence, consumers will benefit from lower prices. Thus, it is a multi-win situation among the suppliers, manufacturers, and consumers.

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“…Jung and Feng (2020) investigated subsidy design when the evolution of firms' green technology development is uncertain. Moreover, some studies are focused on consumer subsidies (Cohen et al, 2016) and investor subsidies (Yang et al, 2020). However, the above studies usually regard the subsidy level as an exogenous parameter and ignore the regulator's role in the technology innovation.…”

Section: Literature Reviewmentioning

confidence: 99%

The optimal subsidy scheme and technology innovation strategy considering consumers' green premium

Wang

Chen

Yang

2021

APJML

Self Cite

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Purpose This paper investigates how a regulator pursuing social welfare maximization designs an optimal subsidy scheme to stimulate technology innovation in the presence of a consumer green premium. Specifically, the authors solve the following questions: (1) Does the consumers' green premium affect the design of the subsidy scheme? (2) How should the firm choose a green technology innovation strategy under the optimal subsidy scheme? (3) Does technology innovation bring higher social welfare and lower environmental impact? Design/methodology/approach The authors first develop a game model to explore the impact of subsidy schemes on social welfare without considering technology innovation. Then the authors investigate two innovation strategies, in-house innovation and external introduction, under the optimal subsidy scheme. Finally, they illustrate the optimal choices of innovation strategy for the firm, consumers and regulators. Findings The results reveal that the subsidy scheme will not always increase social welfare, which depends on the environmental improvement coefficient of the unit green level. The optimal subsidy level increases with the green premium, but it is not related to the size of the consumer green segment. Moreover, the success rate of in-house innovation will raise the optimal green level, but the company benefits from an increased success rate of in-house innovation only when the green segment is large enough. The green segment size and external green level jointly determine the choice of technology innovation strategy. Originality/value This research is the first to analyze this problem while considering the green demand and subsidy scheme simultaneously as drivers of a firm's technology innovation, thereby providing new managerial implications for decisions by the regulator and firms.

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Cooperation and coordination in green supply chain with R&D uncertainty

Cited by 39 publications

References 53 publications

Strategic sourcing model for green supply chain management: an insight into automobile manufacturing units in India

Strategic sourcing model for green supply chain management: an insight into automobile manufacturing units in India

The Effect of a Supplier’s Eco-Design on the Economic Benefits of a Supply Chain and Associated Coordination

The optimal subsidy scheme and technology innovation strategy considering consumers' green premium

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