IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i13p7499-d588926.html
   My bibliography  Save this article

Cooperative Green Technology Innovation of an E-Commerce Sales Channel in a Two-Stage Supply Chain

Author

Listed:
  • Zongyu Mu

    (Department of Management Science and Engineering, School of Business, Qingdao University, Qingdao 266071, China)

  • Yuangang Zheng

    (Department of Management Science and Engineering, School of Business, Qingdao University, Qingdao 266071, China)

  • Hao Sun

    (Department of Management Science and Engineering, School of Business, Qingdao University, Qingdao 266071, China)

Abstract

The potential broad market of green consumption has encouraged an increasing number of enterprises to carry out green technology innovation activities. This paper examines a two-stage supply chain of e-commerce sales channels under different cooperative models. We find that consumers’ green preferences are the main factor that affects green product market demand. The manufacturer and the retailer can raise the levels of green technology innovation and extend green promotional services to expand product market demand in online and offline channels. However, consumers’ e-commerce preferences and online free-riding behaviors affect the manufacturer’s sales channel choice. The retailer can improve the level of green promotional services to hold offline channel market demand, while promotional behaviors have a positive/negative spillover effect on online market demand if the level of free riding falls above/below consumers’ e-commerce preferences. The higher the cooperative level is, the later the manufacturer will open the online channel and close the offline channel to ensure a high level of green promotional service from the cooperative retailer. The results show that the stronger the level of cooperation among all members is, the better the economic, ecological, and social benefits will be. Therefore, we design a revenue-cost sharing contract that can effectively motivate green technology innovation and green promotional services and afford all members win-win profits.

Suggested Citation

  • Zongyu Mu & Yuangang Zheng & Hao Sun, 2021. "Cooperative Green Technology Innovation of an E-Commerce Sales Channel in a Two-Stage Supply Chain," Sustainability, MDPI, vol. 13(13), pages 1-28, July.
  • Handle: RePEc:gam:jsusta:v:13:y:2021:i:13:p:7499-:d:588926
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/13/7499/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/13/13/7499/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zhu, Wenge & He, Yuanjie, 2017. "Green product design in supply chains under competition," European Journal of Operational Research, Elsevier, vol. 258(1), pages 165-180.
    2. Junbin Wang & Xuan Gao & Zhiguo Wang, 2021. "Sustainable Supply Chain Decisions under E-Commerce Platform Marketplace with Competition," Sustainability, MDPI, vol. 13(8), pages 1-23, April.
    3. Chongfeng Lan & Zhongzhen Miao & Huanyong Ji, 2021. "Strategic Analysis of Dual-Channel Green Supply Chain with an Unreliable and Competitive Supplier," Sustainability, MDPI, vol. 13(10), pages 1-22, May.
    4. Hong, Zhaofu & Guo, Xiaolong, 2019. "Green product supply chain contracts considering environmental responsibilities," Omega, Elsevier, vol. 83(C), pages 155-166.
    5. Bin Dan & Can Liu & Guangye Xu & Xumei Zhang, 2014. "Pareto Improvement Strategy for Service-Based Free-Riding in a Dual-Channel Supply Chain," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 31(06), pages 1-27.
    6. Yang, Wenjuan & Zhang, Jiantong & Yan, Hong, 2021. "Impacts of online consumer reviews on a dual-channel supply chain," Omega, Elsevier, vol. 101(C).
    7. Dazhong Wu & Gautam Ray & Xianjun Geng & Andrew Whinston, 2004. "Implications of Reduced Search Cost and Free Riding in E-Commerce," Marketing Science, INFORMS, vol. 23(2), pages 255-262, November.
    8. Frederik Dahlmann & Jens K. Roehrich, 2019. "Sustainable supply chain management and partner engagement to manage climate change information," Business Strategy and the Environment, Wiley Blackwell, vol. 28(8), pages 1632-1647, December.
    9. Yan, Nina & Zhang, Yaping & Xu, Xun & Gao, Yongling, 2021. "Online finance with dual channels and bidirectional free-riding effect," International Journal of Production Economics, Elsevier, vol. 231(C).
    10. Dana, James D, Jr & Spier, Kathryn E, 2001. "Revenue Sharing and Vertical Control in the Video Rental Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 49(3), pages 223-245, September.
    11. Dash Wu, Desheng & Yang, Lipo & Olson, David L., 2019. "Green supply chain management under capital constraint," International Journal of Production Economics, Elsevier, vol. 215(C), pages 3-10.
    12. Yan, Nina & Liu, Yang & Xu, Xun & He, Xiuli, 2020. "Strategic dual-channel pricing games with e-retailer finance," European Journal of Operational Research, Elsevier, vol. 283(1), pages 138-151.
    13. Yuyan Wang & Runjie Fan & Liang Shen & Mingzhou Jin, 2020. "Decisions and coordination of green e-commerce supply chain considering green manufacturer's fairness concerns," International Journal of Production Research, Taylor & Francis Journals, vol. 58(24), pages 7471-7489, December.
    14. Zhang, Peng & He, Yong & Shi, Chunming (Victor), 2017. "Retailer's channel structure choice: Online channel, offline channel, or dual channels?," International Journal of Production Economics, Elsevier, vol. 191(C), pages 37-50.
    15. Adeinat, Hamza & Ventura, Jose A., 2018. "Integrated pricing and supplier selection in a two-stage supply chain," International Journal of Production Economics, Elsevier, vol. 201(C), pages 193-202.
    16. Xing, Dahai & Liu, Tieming, 2012. "Sales effort free riding and coordination with price match and channel rebate," European Journal of Operational Research, Elsevier, vol. 219(2), pages 264-271.
    17. Song Huang & Xu Guan & Ying†Ju Chen, 2018. "Retailer Information Sharing with Supplier Encroachment," Production and Operations Management, Production and Operations Management Society, vol. 27(6), pages 1133-1147, June.
    18. Tsan-Ming Choi & T. C. E. Cheng & Xiande Zhao & Xiang Li & Yongjian Li & Xiaoqiang Cai & Jun Shan, 2016. "Service Channel Choice for Supply Chain: Who is Better Off by Undertaking the Service?," Production and Operations Management, Production and Operations Management Society, vol. 25(3), pages 516-534, March.
    19. Chen, Xu & Wang, Xiaojun & Zhou, Mingmei, 2019. "Firms’ green R&D cooperation behaviour in a supply chain: Technological spillover, power and coordination," International Journal of Production Economics, Elsevier, vol. 218(C), pages 118-134.
    20. Shi, Siyu & Sun, Jingchun & Cheng, T.C.E., 2020. "Wholesale or drop-shipping: Contract choices of the online retailer and the manufacturer in a dual-channel supply chain," International Journal of Production Economics, Elsevier, vol. 226(C).
    21. Dong, Ciwei & Liu, Qingyu & Shen, Bin, 2019. "To be or not to be green? Strategic investment for green product development in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 193-227.
    22. Jiafu Su & Chi Li & Qingjun Zeng & Jiaquan Yang & Jie Zhang, 2019. "A Green Closed-Loop Supply Chain Coordination Mechanism Based on Third-Party Recycling," Sustainability, MDPI, vol. 11(19), pages 1-14, September.
    23. Wei-yu Kevin Chiang & Dilip Chhajed & James D. Hess, 2003. "Direct Marketing, Indirect Profits: A Strategic Analysis of Dual-Channel Supply-Chain Design," Management Science, INFORMS, vol. 49(1), pages 1-20, January.
    24. Wang, Cuixia & Leng, Mingming & Liang, Liping, 2018. "Choosing an online retail channel for a manufacturer: Direct sales or consignment?," International Journal of Production Economics, Elsevier, vol. 195(C), pages 338-358.
    25. Ghosh, Debabrata & Shah, Janat, 2015. "Supply chain analysis under green sensitive consumer demand and cost sharing contract," International Journal of Production Economics, Elsevier, vol. 164(C), pages 319-329.
    26. James D. Dana, Jr. & Kathryn E. Spier, 2001. "Revenue Sharing and Vertical Control in the Video Rental Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 49(3), pages 223-245, September.
    27. Zhang, Shichen & Zhang, Jianxiong & Zhu, Guowei, 2019. "Retail service investing: An anti-encroachment strategy in a retailer-led supply chain," Omega, Elsevier, vol. 84(C), pages 212-231.
    28. Yu, Xinning & Lan, Yanfei & Zhao, Ruiqing, 2021. "Strategic green technology innovation in a two-stage alliance: Vertical collaboration or co-development?," Omega, Elsevier, vol. 98(C).
    29. Chen, Jingxian & Liang, Liang & Yao, Dong-Qing & Sun, Shengnan, 2017. "Price and quality decisions in dual-channel supply chains," European Journal of Operational Research, Elsevier, vol. 259(3), pages 935-948.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ling Liu & Qiaoyu Peng, 2022. "Evolutionary Game Analysis of Enterprise Green Innovation and Green Financing in Platform Supply Chain," Sustainability, MDPI, vol. 14(13), pages 1-13, June.
    2. Chang Liu & Yueli Xu, 2021. "Consumer Sentiment Involvement in Big Data Analytics and Its Impact on Product Design Innovation," Sustainability, MDPI, vol. 13(21), pages 1-12, October.
    3. Lu Zhang & Deqing Ma & Jinsong Hu, 2021. "Research on the Sustainable Operation of Low-Carbon Tourism Supply Chain under Sudden Crisis Prediction," Sustainability, MDPI, vol. 13(15), pages 1-25, July.
    4. Kelei Xue & Guohua Sun & Yuyan Wang & Shuiye Niu, 2021. "Optimal Pricing and Green Product Design Strategies in a Sustainable Supply Chain Considering Government Subsidy and Different Channel Power Structures," Sustainability, MDPI, vol. 13(22), pages 1-26, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shengliang Zong & Chunyang Shen & Siping Su, 2022. "Decision Making in Green Supply Chain with Manufacturers’ Misreporting Behavior," Sustainability, MDPI, vol. 14(9), pages 1-28, April.
    2. Li, Jin & Hu, Zening & Shi, Victor & Wang, Qian, 2021. "Manufacturer's encroachment strategy with substitutable green products," International Journal of Production Economics, Elsevier, vol. 235(C).
    3. Xue, Musen & Zhang, Jianxiong & Zhu, Guowei, 2020. "Quantity decision timing with spillover effect and asymmetric demand information," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    4. Pi, Zhenyang & Fang, Weiguo & Perera, Sandun C. & Zhang, Baofeng, 2022. "Enhancing the online buyer perception of consumer experience products in a dual-channel supply chain: A new role of free-riding," International Journal of Production Economics, Elsevier, vol. 253(C).
    5. Sun, Cuiying & Zhang, Xiong & Zhou, Yong-Wu & Cao, Bin, 2022. "Pricing, financing and channel structure for capital-constrained dual-channel supply chains with product heterogeneity," International Journal of Production Economics, Elsevier, vol. 253(C).
    6. Pun, Hubert & Chen, Jing & Li, Wei, 2020. "Channel strategy for manufacturers in the presence of service freeriders," European Journal of Operational Research, Elsevier, vol. 287(2), pages 460-479.
    7. Shengliang Zong & Chunyang Shen, 2023. "Decision-making and coordination in an e-commerce supply chain under channel selection," OPSEARCH, Springer;Operational Research Society of India, vol. 60(1), pages 326-369, March.
    8. Hanli Hu & Yu Cao & Dan Yi & Qingsong Li, 2023. "How to Distribute Green Products in Competition with Brown Products? Direct Selling versus Agent Selling?," Sustainability, MDPI, vol. 15(14), pages 1-22, July.
    9. Wen-Bin Wang & Qiang Sun & Xiu-Xia Yan & Yuan-Qing Liu, 2022. "Dual-Channel Supply Chain Financing Operation Strategy Considering Free-Riding Effect under Different Power Structures," Sustainability, MDPI, vol. 14(15), pages 1-27, July.
    10. Matsui, Kenji, 2020. "Optimal bargaining timing of a wholesale price for a manufacturer with a retailer in a dual-channel supply chain," European Journal of Operational Research, Elsevier, vol. 287(1), pages 225-236.
    11. Mukherjee, Arka & Carvalho, Margarida, 2021. "Dynamic decision making in a mixed market under cooperation: Towards sustainability," International Journal of Production Economics, Elsevier, vol. 241(C).
    12. Chirantan Mondal & Bibhas C. Giri, 2022. "Analyzing a manufacturer-retailer sustainable supply chain under cap-and-trade policy and revenue sharing contract," Operational Research, Springer, vol. 22(4), pages 4057-4092, September.
    13. Xiaoli Zhang & Guoyi Xiu & Fakhar Shahzad & Yupeng Duan, 2021. "Optimal Financing Strategy in a Capital-Constrained Supply Chain with Retailer Green Marketing Efforts," Sustainability, MDPI, vol. 13(3), pages 1-19, January.
    14. Matsui, Kenji, 2024. "Should competing suppliers with dual-channel supply chains adopt agency selling in an e-commerce platform?," European Journal of Operational Research, Elsevier, vol. 312(2), pages 587-604.
    15. Wan, Xing & Chen, Jing & Li, Wei, 2023. "The impact of retail pricing leadership under manufacturer encroachment," European Journal of Operational Research, Elsevier, vol. 310(1), pages 217-237.
    16. Kelei Xue & Guohua Sun & Tongtong Yao, 2022. "Incentive Mechanisms for Carbon Emission Abatement Considering Consumers’ Low-Carbon Awareness under Cap-and-Trade Regulation," IJERPH, MDPI, vol. 19(7), pages 1-27, March.
    17. Subrata Mitra, 2022. "Economic models of price competition between traditional and online retailing under showrooming," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 49(1), pages 29-63, March.
    18. Hu, Huaqing & Sun, Shuxiao & Zheng, Xiaona & Chen, Lihua & Huang, Tao, 2021. "Committed or contingent? The retailer’s information acquisition and sharing strategies when confronting manufacturer encroachment," International Journal of Production Economics, Elsevier, vol. 242(C).
    19. Zhang, Zhe & Song, Huaming & Gu, Xiaoyu & Shi, Victor & Zhu, Jing, 2021. "How to compete with a supply chain partner: Retailer's store brand vs. manufacturer's encroachment," Omega, Elsevier, vol. 103(C).
    20. Yang, Jiaquan & Li, Kevin W. & Huang, Jun, 2023. "Manufacturer encroachment with a new product under network externalities," International Journal of Production Economics, Elsevier, vol. 263(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:13:p:7499-:d:588926. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.