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Coordinating Leader-Follower Supply Chain with Sustainable Green Technology Innovation on Their Fairness Concerns

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  • Bisheng Du

    (School of Business, Ningbo University, Ningbo 315211, China
    Center for Collaborative Innovation on Port Trading Cooperation and Development (Collaborative Innovation Center of Port Economics), Ningbo University, Ningbo 315211, China)

  • Qing Liu

    (School of Business, Ningbo University, Ningbo 315211, China)

  • Guiping Li

    (School of Business, Ningbo University, Ningbo 315211, China
    Center for Collaborative Innovation on Port Trading Cooperation and Development (Collaborative Innovation Center of Port Economics), Ningbo University, Ningbo 315211, China)

Abstract

Sustainable green technology innovation is essential in all the stages of the supply chain development. The members of the supply chain in each stage need to invest in sustainable green technology innovation research and development. However, whether the sustainable green technology innovation investments and profits for all the members are fairness concerned is a critical factor to motivate the supply chain members. Motivated by a real business investigation, in this study, a supply chain model with one supplier and one manufacturer is analyzed. We consider fairness concerns for the supplier and the manufacturer with sustainable green technology innovation development. We derive the optimal results in both with and without fairness concern. The results indicate that fairness concerns can promote and coordinate the supply chain members without advantage inequity averseness, to invest more on their sustainable green technology innovation development.

Suggested Citation

  • Bisheng Du & Qing Liu & Guiping Li, 2017. "Coordinating Leader-Follower Supply Chain with Sustainable Green Technology Innovation on Their Fairness Concerns," IJERPH, MDPI, vol. 14(11), pages 1-23, November.
    • Handle: RePEc:gam:jijerp:v:14:y:2017:i:11:p:1357-:d:118102
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    References listed on IDEAS

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