Green Supply Chain Management with Cooperative Promotion

Abstract

Green supply chain management has received increasing attention as consumers have become more environmentally conscious. Manufacturers are making green investments to meet consumers’ demands, while retailers in different markets often engage in cooperative promotion to attract more consumers. This study develops game theoretic models for investigating cooperative promotion for two cross-market firms with different channel structures, i.e., decentralized and centralized. The manufacturer determines the wholesale price for the retailers and the green investment of a product, and the retailers determine the promotional effort and retail price. This study finds that whether the firms join in cooperative promotion mainly depends on the wholesale price, as well as the impacts of the price, green investment, and cooperative promotional activities on the demand. When the wholesale price is relatively low, the retail price of the decentralized green supply chain must be lower than that of the centralized green supply chain. On the contrary, the difference in the retail price between the two green supply chains varies with the impacts of green investment and cooperative promotional activities on demand. In addition, due to the influence of channel structure, the contribution to cooperative promotion of the centralized supply chain is more than that of the decentralized supply chain with the most given conditions. Moreover, as the impact of cooperative promotional activities on demand increases, the centralized green supply chain does not necessarily result in higher profits than the decentralized green supply chain.

Green supply chain management and innovation persistence–Based on environmental turbulence perspective

“…We believe that GSCM derives another important mechanism based on this, namely goal orientation. Meanwhile, GSCM emphasizes that alliance members must take environmental protection and management as a common goal, rectifying how some firms blindly pursue expansion and profitability (Yan et al, 2021). Therefore, the effective implementation of GSCM can promote innovation persistence by improving innovation efficiency (efficiency oriented), ensuring innovation quality (goal oriented) and alleviating the financing constraints of firms (relationship oriented).…”

“…In terms of goal orientation, GSCM encourages firms to reduce environmental pollution and material waste (Song and Yu, 2018) and requires firms to save energy and clean production by inventing and introducing new technologies (Musaad et al, 2020), which invariably activates the need to improve the quality of innovation. In addition, under the collaborative environment provided by GSCM, firms can develop products and technologies that better cater to the market by identifying customers' product environmental needs (Yan et al, 2021). Therefore, high innovation quality will promote the accumulation of firm social resources, a core condition for firms to achieve innovation persistence.…”

“…The GSCM, with the integration of green manufacturing theory and supply chain management, aims to optimize resource efficiency and reduce the adverse impact on the environment during production. To achieve this goal, environmental management thinking and producer's social responsibility awareness should be integrated in the traditional supply chain management (Yan et al, 2021;Habib et al, 2021). The content of GSCM mainly covers the following three perspectives: first, core firm based on internal-perspective, in which firms are required to establish their own environmental compliance review mechanisms (Kong et al, 2020); second, supplier-oriented external perspective, in which both core firms and suppliers are required to set consistent environmental goals (Habib et al, 2021), core firms impose specific environmental requirements on suppliers' product design (Mao et al, 2017) and monitor suppliers' environmental violations (Lee and Kim, 2011); third, customer oriented external perspective, in which core firms are required to respond to public accountability regarding environmental compliance, to understand and meet customer demands for environmental protection (Mao et al, 2017).…”

“…The GSCM, with the integration of green manufacturing theory and supply chain management, aims to optimize resource efficiency and reduce the adverse impact on the environment during production. To achieve this goal, environmental management thinking and producer's social responsibility awareness should be integrated in the traditional supply chain management (Yan et al. , 2021; Habib et al.…”

The dynamics of green supply chain management within the framework of renewable energy

“…This process further involves monitoring, planning, execution, and control of practices, and tools that permit firms and organizations to be more aware of the environment in a sustainable manner. GSCM has evolved as a significant new pattern to give companies competitive advantages, minimize impacts upon the environment and market share objectives by lowering their environmental risks and impacts, and raise ecological efficiency 60,70,73‐75 . Figures 5 and 6 show the delimitation of the GSCM and the pictorial representation of the functional integration of all the components of the product life cycle and the GSCM model, respectively.…”