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Economic and Environmental Performance of Fashion Supply Chain: The Joint Effect of Power Structure and Sustainable Investment

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  • Xiutian Shi

    (School of Economics & Management, Nanjing University of Science & Technology, Nanjing 210094, China)

  • Yuan Qian

    (School of Economics & Management, Nanjing University of Science & Technology, Nanjing 210094, China)

  • Ciwei Dong

    (School of Business Administration/MBA School, Zhongnan University of Economics and Law, Wuhan 430073, China)

Abstract

Fashion supply chain members now search for trade-offs between sustainable investment and the related incentives, such as savings on environmental taxes and gains in incremental demands. To evaluate the economic and environmental performance of sustainable investment from a power perspective, we develop an analytical model to study a two-echelon sustainable supply chain consisting of one retailer and one manufacturer with three different power structures. We derive the optimal solutions for various cases associated with different supply chain power structures and sustainable investors. Though it is beneficial for both the manufacturer and retailer to make sustainable investment, they often utilize high power to gain economic benefit with less sustainable investment. Interestingly, the follower with less supply chain power has more incentive to make a sustainable effort to achieve a higher profit. The optimal amount of sustainable investment in the apparel manufacturer investment case is greater than that in the retailer investment case in most scenarios.

Suggested Citation

  • Xiutian Shi & Yuan Qian & Ciwei Dong, 2017. "Economic and Environmental Performance of Fashion Supply Chain: The Joint Effect of Power Structure and Sustainable Investment," Sustainability, MDPI, vol. 9(6), pages 1-22, June.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:6:p:961-:d:100655
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    10. Kuo-Kuang Fan & Yi-Ting Chang, 2023. "Exploring the Key Elements of Sustainable Design from a Social Responsibility Perspective: A Case Study of Fast Fashion Consumers’ Evaluation of Green Projects," Sustainability, MDPI, vol. 15(2), pages 1-20, January.
    11. Talay, Cagri & Oxborrow, Lynn & Brindley, Clare, 2020. "How small suppliers deal with the buyer power in asymmetric relationships within the sustainable fashion supply chain," Journal of Business Research, Elsevier, vol. 117(C), pages 604-614.
    12. Gurinder Kaur & Ronald Kander, 2023. "Supply Chain Simulation of Manufacturing Shirts Using System Dynamics for Sustainability," Sustainability, MDPI, vol. 15(21), pages 1-24, October.
    13. Fang, Yuan & Yu, Yugang & Shi, Ye & Liu, Jie, 2020. "The effect of carbon tariffs on global emission control: A global supply chain model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    14. Bin Shen & Qingying Li & Ciwei Dong & Patsy Perry, 2017. "Sustainability Issues in Textile and Apparel Supply Chains," Sustainability, MDPI, vol. 9(9), pages 1-6, September.
    15. Xiutian Shi & Xiaoli Zhang & Ciwei Dong & Subin Wen, 2018. "Economic Performance and Emission Reduction of Supply Chains in Different Power Structures: Perspective of Sustainable Investment," Energies, MDPI, vol. 11(4), pages 1-16, April.
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