Manufacturer encroachment on a green supply chain with environmental labeling

Abstract

This paper investigates manufacturer encroachment on a green supply chain wherein alternative environmental labels are utilized to disclose the hidden product greenness attribute. We show that both self‐ and government labels facilitate and adjust the promotion effect of encroachment on product greenness, stimulating green demand and retail prices for profitability improvement and raising wholesale prices for investment sharing. The difference is that self‐labeling's low credibility and complete self‐interest features only induce inferior greenness increments and coordination effects. Government labeling outperforms self‐labeling in simultaneously optimizing the interests of the manufacturer, retailer, and society, presuming the benefits of greenness improvement reimburse investments.

Contract manufacturer encroachment via the customer‐to‐manufacturer strategy under different platform selling modes

“…There are studies that illustrate manufacturer encroachment using a product differentiation strategy. Newly introduced products are distinguished from existing products by vertical quality (Zhong & Shen, 2022), differentiated greenness (Hu et al, 2023;, and customization (Li et al, 2015). We refer to Tahirov and Glock (2022) for a comprehensive review of manufacturer encroachment.…”

For showing only, for selling only, or for hybrid? Physical store deployment for a manufacturer in online retailing

“…The demand specification follows from the representative consumer utility introduced by Singh and Vives (1984), which assumes that positive non-integer amounts of each product may be consumed and has been widely used in operations management and marketing (Chen et al, 2019;Hu et al, 2023;Nie et al, 2019;.…”

The interplay between blockchain adoption and green operations for a firm

“…The functional quality obtained by consumers from green products is αV, where α( > 1) is the parameter indicating the difference in functional quality between the two products (Hong et al, 2018. Besides, the environmental utility obtained by consumers from green products is assumed to be a linear function (i.e., ke), where e represents the green degree of the green product and k represents the environmental awareness level of consumers for green technologies (Chen, 2001;Hu et al, 2023;Singh et al, 2023;Xu, Zhang, et al, 2023;Zhang et al, 2017). The larger the green degree of products, the higher the environmental utility obtained by consumers.…”