IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v46y2025i5p3142-3156.html

Coordination of Risk‐Averse Behaviors in a Green Supply Chain‐to‐Chain Competition

Author

Listed:
  • Zhen Chen
  • Kaveh Khalilpour
  • Rui Zhao

Abstract

This research investigates the coordination of risk‐averse behaviors among members in green supply chain‐to‐chain competition. We establish models encompassing member rationality, manufacturer risk aversion, cost‐sharing contracts, and revenue‐sharing contracts, providing the optimal equilibrium results for each scenario. This paper compares the effectiveness of cost‐sharing versus revenue‐sharing contracts, finding that risk‐averse behavior diminishes profits, with total profits falling below those achieved under member rationality. Both contract types can facilitate coordination, but the revenue‐sharing contract proves more effective. Under the revenue‐sharing contract, wholesale and retail prices decrease, product greenness enhances, and profits for manufacturers, retailers, and the entire supply chain increase.

Suggested Citation

  • Zhen Chen & Kaveh Khalilpour & Rui Zhao, 2025. "Coordination of Risk‐Averse Behaviors in a Green Supply Chain‐to‐Chain Competition," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(5), pages 3142-3156, July.
    • Handle: RePEc:wly:mgtdec:v:46:y:2025:i:5:p:3142-3156
    DOI: 10.1002/mde.4523
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.4523
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.4523?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Subrata Saha & Zbigniew Banaszak & Grzegorz Bocewicz & Izabela Ewa Nielsen, 2022. "Pricing and quality competition for substitutable green products with a common retailer," Operational Research, Springer, vol. 22(4), pages 3713-3746, September.
    2. Chen, Pingping & Zhao, Ruiqing & Yan, Yingchen & Li, Xiang, 2020. "Promotional pricing and online business model choice in the presence of retail competition," Omega, Elsevier, vol. 94(C).
    3. Nayeon Kim & Kyungtag Lee, 2023. "Environmental Consciousness, Purchase Intention, and Actual Purchase Behavior of Eco-Friendly Products: The Moderating Impact of Situational Context," IJERPH, MDPI, vol. 20(7), pages 1-17, March.
    4. Guo, Shu & Choi, Tsan-Ming & Shen, Bin, 2020. "Green product development under competition: A study of the fashion apparel industry," European Journal of Operational Research, Elsevier, vol. 280(2), pages 523-538.
    5. Cai, Jianhu & Sun, Haining & Shang, Jennifer & Hegde, Gajanan G., 2023. "Information structure selection in a green supply chain: Impacts of wholesale price and greenness level," European Journal of Operational Research, Elsevier, vol. 306(1), pages 34-46.
    6. Davoudi, Zahra & Seifbarghy, Mehdi & Sarkar, Mitali & Sarkar, Biswajit, 2023. "Effect of bargaining on pricing and retailing under a green supply chain management," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    7. Ma, Junhai & Hou, Yaming & Wang, Zongxian & Yang, Wenhui, 2021. "Pricing strategy and coordination of automobile manufacturers based on government intervention and carbon emission reduction," Energy Policy, Elsevier, vol. 148(PA).
    8. Haojia He & Xingzheng Ai & Ganfu Wang & Li Zhong, 2023. "Manufacturer rebate strategy under chain to chain competition," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 74(5), pages 1316-1330, May.
    9. Feng Tao & Yan Zhou & Junsong Bian & Kin Keung Lai, 2023. "Optimal channel structure for a green supply chain with consumer green-awareness demand," Annals of Operations Research, Springer, vol. 324(1), pages 601-628, May.
    10. Lu Chen & Ayad Hendalianpour & Mohammad Reza Feylizadeh & Haiyan Xu, 2023. "Factors Affecting the Use of Blockchain Technology in Humanitarian Supply Chain: A Novel Fuzzy Large-Scale Group-DEMATEL," Group Decision and Negotiation, Springer, vol. 32(2), pages 359-394, April.
    11. Seyyed-Mahdi Hosseini-Motlagh & Samira Ebrahimi & Abbas Jokar, 2021. "Sustainable supply chain coordination under competition and green effort scheme," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 72(2), pages 304-319, February.
    12. Chirantan Mondal & Bibhas C. Giri, 2022. "Retailers’ competition and cooperation in a closed-loop green supply chain under governmental intervention and cap-and-trade policy," Operational Research, Springer, vol. 22(2), pages 859-894, April.
    13. Xi Li & Yanzhi Li & Ying-Ju Chen, 2022. "Strategic Inventories Under Supply Chain Competition," Manufacturing & Service Operations Management, INFORMS, vol. 24(1), pages 77-90, January.
    14. Maryam Shoaeinaeini & Kannan Govindan & Donya Rahmani, 2022. "Pricing policy in green supply chain design: the impact of consumer environmental awareness and green subsidies," Operational Research, Springer, vol. 22(4), pages 3989-4028, September.
    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. Yu, Jing & Wang, Lin & Zhang, Wenqing & Zhou, Chi, 2025. "Winning markets via live-streams: Competitive manufacturers' channel strategies," Journal of Retailing and Consumer Services, Elsevier, vol. 87(C).

    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. Niu Yu & Mengni Xiong & Pin Zhou & Qingguo Bai, 2025. "Contract design for a retailer-dominated supply chain under asymmetric green investment cost information," Operational Research, Springer, vol. 25(1), pages 1-31, March.
    2. Shuiwang Zhang & Qianlan Ding & Jingcheng Ding, 2023. "Return Strategy of E-Commerce Platform Based on Green and Sustainable Development," Sustainability, MDPI, vol. 15(14), pages 1-18, July.
    3. Li, Jin & Wang, Haoyu & Shi, Victor & Sun, Qi, 2024. "Manufacturer's choice of online selling format in a dual-channel supply chain with green products," European Journal of Operational Research, Elsevier, vol. 318(1), pages 131-142.
    4. Xiaoya Han & Xin Liu, 2025. "A competitive supply chain model considering consumer green preference under demand uncertainty," Operational Research, Springer, vol. 25(2), pages 1-28, June.
    5. Zewei Rao & Ping Li & Chunguang Bai, 2024. "RETRACTED ARTICLE: Unraveling the Impact of Carbon Markets on Corporate Green Technology Investment Behavior: an Evolutionary Game Approach from the Lens of Competitive Manufacturers," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 11397-11429, September.
    6. Liu, Changyu & Song, Yadong & Wang, Wei & Shi, Xunpeng, 2023. "The governance of manufacturers’ greenwashing behaviors: A tripartite evolutionary game analysis of electric vehicles," Applied Energy, Elsevier, vol. 333(C).
    7. Abdul Quadir, 2025. "Manufacturers’ choice of greening level in competitive environment," OPSEARCH, Springer;Operational Research Society of India, vol. 62(3), pages 1288-1316, September.
    8. Lili Zhao & Qingguo Bai & Shihao Liu, 2026. "Dynamic strategy of battery operation in a three-tier new energy vehicle supply chain considering carbon abatement," Operational Research, Springer, vol. 26(2), pages 1-39, June.
    9. Abhijit Barman, 2025. "Return-refund strategy with coordination contracts in the e-commerce supply chain: a study under effects of digitalization and sustainable manufacturing," Electronic Commerce Research, Springer, vol. 25(5), pages 3981-4033, October.
    10. Xin Zhang & Xiong Zhang & Lihong Cheng, 2026. "IoT-enabled green product development under competition: the impact of digital value-added services," Annals of Operations Research, Springer, vol. 359(1), pages 395-427, April.
    11. Shuai Huang & Wenyu Hou, 2025. "Blockchain‐Driven Green Traceability: Greener or More Profitable?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(5), pages 2810-2837, July.
    12. Dou, Guowei & Choi, Tsan-Ming, 2024. "Compete or cooperate? Effects of channel relationships on government policies for sustainability," European Journal of Operational Research, Elsevier, vol. 313(2), pages 718-732.
    13. Wu, Huamin & Weng, Jiaxiang & Li, Guo & Zheng, Hong, 2024. "Green subsidy Strategies and fairness concern in a Capital-Constrained supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 192(C).
    14. Shivendra Kumar Gupta & Vinod Kumar Mishra, 2025. "Sustainable competition and cooperation: a game-theoretical analysis of substitutable green products," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 16(1), pages 234-253, January.
    15. Wu, Jianghua & Yao, Junzhu & Wang, Yuqian, 2025. "Platform's role in green vs. non-green product competition: Blockchain transparency and selling contract selection," International Journal of Production Economics, Elsevier, vol. 288(C).
    16. Hsieh, Chung-Chi & Wu, Ching-Yu & Lathifah, Artya, 2025. "Cross-channel influence of blockchain technology on green supply chains under asymmetric retail platform competition," International Journal of Production Economics, Elsevier, vol. 283(C).
    17. Zhao, Ying & Guan, Zhi-min & Zhang, Jun, 2023. "Return freight strategies and selling formats in e-commerce supply chain: The perspective of consumer fairness concerns and online shopping returns," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    18. Yang, Yimin & Yi, Chaoqun & Li, Hailing & Dong, Xuesong & Yang, Lulu & Wang, Zilong, 2025. "An analysis on the role of artificial intelligence in green supply chains," Technological Forecasting and Social Change, Elsevier, vol. 217(C).
    19. Cai, Jianhu & Sun, Haining & Shang, Jennifer & Hegde, Gajanan G., 2023. "Information structure selection in a green supply chain: Impacts of wholesale price and greenness level," European Journal of Operational Research, Elsevier, vol. 306(1), pages 34-46.
    20. Cai, Ya-Jun & Choi, Tsan-Ming, 2020. "A United Nations’ Sustainable Development Goals perspective for sustainable textile and apparel supply chain management," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).

    More about this item

    Statistics

    Access and download statistics

    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:wly:mgtdec:v:46:y:2025:i:5:p:3142-3156. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    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.