IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i3p1128-d1580415.html
   My bibliography  Save this article

Consumer Orientation and Market-Driven Strategies for Promoting Low-Carbon Innovation in Supply Chains: Pathways to Sustainable Development

Author

Listed:
  • Ling Peng

    (School of Management, Guangdong University of Science and Technology, Dongguan 523083, China)

  • Zhen Fan

    (School of Management, Guangdong University of Science and Technology, Dongguan 523083, China)

  • Xuming Zhang

    (School of Management, Guangdong University of Science and Technology, Dongguan 523083, China)

Abstract

As environmental challenges become increasingly pressing, companies are integrating low-carbon innovations into supply chain management to achieve economic performance while promoting environmental sustainability and social responsibility. This study explores how low-carbon innovation in supply chains can be driven by consumer orientation and market-driven strategies, contributing to sustainable development. Using Stackelberg game theory, the study develops centralized and decentralized decision-making models and solves them through differential game methods. Numerical simulations are employed to analyze the impact of consumer preferences for low-carbon products and market strategies on supply chain decisions and overall profitability. The results show that consumer demand for low-carbon products plays a crucial role in driving low-carbon innovation within supply chains. Market strategies, particularly their sensitivity to consumer preferences, significantly influence decision-making processes. Further analysis reveals that the centralized decision-making model offers greater advantages in resource optimization and responsiveness to market shifts, while the decentralized model allows independent decision-making by supply chain participants, balancing competition and co-operation. This enables firms to achieve both economic benefits and reduce their environmental footprint, thereby contributing to sustainable development. This research highlights the importance of aligning consumer demand with market strategies to foster low-carbon innovation. The findings provide valuable theoretical insights and practical strategies to help supply chain companies enhance their competitiveness and contribute to the sustainable development of global supply chains.

Suggested Citation

  • Ling Peng & Zhen Fan & Xuming Zhang, 2025. "Consumer Orientation and Market-Driven Strategies for Promoting Low-Carbon Innovation in Supply Chains: Pathways to Sustainable Development," Sustainability, MDPI, vol. 17(3), pages 1-23, January.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:3:p:1128-:d:1580415
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/3/1128/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/3/1128/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Longfei He & Baiyun Yuan & Junsong Bian & Kin Keung Lai, 2023. "Differential game theoretic analysis of the dynamic emission abatement in low-carbon supply chains," Annals of Operations Research, Springer, vol. 324(1), pages 355-393, May.
    2. Limin Su & Yongchao Cao & Wenjuan Zhang, 2023. "Low-Carbon Supply Chain Operation Decisions and Coordination Strategies Considering the Consumers’ Preferences," Sustainability, MDPI, vol. 15(14), pages 1-20, July.
    3. Lai, Kee-hung & Feng, Yunting & Zhu, Qinghua, 2023. "Digital transformation for green supply chain innovation in manufacturing operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    4. Ziyuan Zhang & Liying Yu, 2021. "Dynamic Optimization and Coordination of Cooperative Emission Reduction in a Dual-Channel Supply Chain Considering Reference Low-Carbon Effect and Low-Carbon Goodwill," IJERPH, MDPI, vol. 18(2), pages 1-33, January.
    5. Lei Wang & Lin Zhang & Xiaoli Zhang, 2025. "Optimal financing strategies for low‐carbon supply chains: A Stackelberg game perspective," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(1), pages 666-680, January.
    6. Jianwei Xu & Shuxin Liu, 2024. "Current status, evolutionary path, and development trends of low-carbon technology innovation: a bibliometric analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 24151-24182, September.
    7. Li, Wei & Zhao, Xuan & Chen, Jing, 2023. "Co-opetition or decentralization? A study of manufacturers’ sourcing and distribution strategies," European Journal of Operational Research, Elsevier, vol. 311(3), pages 867-886.
    8. Chien-Chi Lin & Chih-Ming Dong, 2023. "Exploring Consumers’ Purchase Intention on Energy-Efficient Home Appliances: Integrating the Theory of Planned Behavior, Perceived Value Theory, and Environmental Awareness," Energies, MDPI, vol. 16(6), pages 1-16, March.
    9. Shirley Thompson, 2023. "Strategic Analysis of the Renewable Electricity Transition: Power to the World without Carbon Emissions?," Energies, MDPI, vol. 16(17), pages 1-34, August.
    Full references (including those not matched with items on IDEAS)

    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. Jinzhi Zou & Khairul Manami Kamarudin & Jing Liu & Jiaqi Zhang, 2024. "Towards Sustainable Mobility: Determinants of Intention to Purchase Used Electric Vehicles in China," Sustainability, MDPI, vol. 16(19), pages 1-20, October.
    2. Yuemei Ding & Dequan Zheng & Xiaoyu Niu, 2023. "Collaborative Green Innovation of Livestock Product Three-Level Supply Chain Traceability System: A Value Co-Creation Perspective," Sustainability, MDPI, vol. 16(1), pages 1-28, December.
    3. Anhang Chen & Huiqin Zhang & Yuxiang Zhang & Junwei Zhao, 2024. "Manufacturers’ digital transformation under carbon cap-and-trade policy: investment strategy and environmental impact," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    4. Shang, Hua & Jiang, Li & Kumar Mangla, Sachin & Pan, Xiongfeng & Song, Malin, 2024. "Examining the role of national governance capacity in building the global low-carbon agricultural supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 192(C).
    5. Benjamin Kwaku Nimako & Silvia Carpitella & Andrea Menapace, 2024. "Novel Multi-Criteria Decision Analysis Based on Performance Indicators for Urban Energy System Planning," Energies, MDPI, vol. 17(20), pages 1-18, October.
    6. Sun, Xuting & Kuo, Yong-Hong & Xue, Weili & Li, Yanzhi, 2024. "Technology-driven logistics and supply chain management for societal impacts," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 185(C).
    7. Yan Lu & Bo Ning & Pengyun Geng & Yan Li & Jiajie Kong, 2025. "Research on the Current Status and Key Issues of China’s Green Electricity Trading Development," Energies, MDPI, vol. 18(7), pages 1-21, March.
    8. Li, Guo & Xue, Jing & Li, Na & Qi, Qingwu, 2024. "Does digital finance favor firms in supply chains? Roles of green innovation and bargaining power," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 183(C).
    9. Li, Longda, 2024. "The environmental spillovers of buyers' digital transformation: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 209(C).
    10. Tao, Zhibin & Chao, Jiaxiao, 2024. "Unlocking new opportunities in the industry 4.0 era, exploring the critical impact of digital technology on sustainable performance and the mediating role of GSCM practices," Innovation and Green Development, Elsevier, vol. 3(3).
    11. Liu, Weihua & Yuan, Chaolun & Wang, Jingkun & Lim, Ming K & Hou, Jiahe, 2024. "Digital supply chain announcements and firm’s stock market value: An empirical study from China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 187(C).
    12. Wen Liu & Hongshuai Han & Pengwen Hou & Huimei Li, 2024. "To collaborate or not? Analysis of competitive manufacturers' green innovation strategy toward sustainability," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(4), pages 2210-2227, June.
    13. Gholami Samira, 2024. "How Does Digital Transformation Affect Green Supply Chain Efficiency?," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 15(1), pages 149-159.
    14. Jianqi Qiao & Suicheng Li & Su Xiong & Na Li, 2023. "How Does the Digital Capability Advantage Affect Green Supply Chain Innovation? An Inter-Organizational Learning Perspective," Sustainability, MDPI, vol. 15(15), pages 1-22, July.
    15. Liu, Fuzhen & He, Chaocheng & Lai, Kee-hung, 2024. "Incorporating resource responsibility into production and logistics management: An empirical investigation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 187(C).
    16. Liang Shen & Fei Lin & T. C. E. Cheng, 2022. "Low-Carbon Transition Models of High Carbon Supply Chains under the Mixed Carbon Cap-and-Trade and Carbon Tax Policy in the Carbon Neutrality Era," IJERPH, MDPI, vol. 19(18), pages 1-21, September.
    17. Niu, Baozhuang & Zhang, Nan & Zhang, Jianhua, 2024. "How to Induce Multinational Firms’ Local Sourcing to Break Carbon Lock-in?," European Journal of Operational Research, Elsevier, vol. 315(2), pages 613-625.
    18. Ismail Abdi Changalima & Prisca Pascrates Rutatola & Goodluck Goldian Ntangeki, 2025. "Trending research topics on carbon footprint and supply chains: a bibliometric analysis based on the Scopus data (2019–2023)," Future Business Journal, Springer, vol. 11(1), pages 1-18, December.
    19. Tao Feng & Md Qamruzzaman & Syeda Samira Sharmin & Salma Karim, 2024. "Bridging Environmental Sustainability and Organizational Performance: The Role of Green Supply Chain Management in the Manufacturing Industry," Sustainability, MDPI, vol. 16(14), pages 1-29, July.
    20. Lijun Fan & Yang Guo & Yiwen Wang & Wei Wang, 2024. "Navigating Green Innovation in High-Tech Manufacturing: The Roles of Customer Concentration and Digital Transformation," Sustainability, MDPI, vol. 16(15), pages 1-28, July.

    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:17:y:2025:i:3:p:1128-:d:1580415. 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.