Manufacturer Encroachment on a Sustainable Supply Chain under Asymmetric Green Information

This paper investigates manufacturer encroachment on a sustainable supply chain, where the manufacturer holds exclusive information on product greenness and is responsible for both corporate social responsibility (CSR) and greening. The manufacturer and the retailer play a signaling game whereby CSR effort and wholesale price serve as joint green signals. Findings reveal that, firstly, encroachment induces higher CSR efforts from manufacturers. When customers exhibit a strong CSR preference, the resulting CSR increment leads to increased offline demand and drives up both wholesale and retail prices in a mutually beneficial manner. This phenomenon is referred to as the CSR effect, yielding a win-win encroachment. Secondly, when signaling product greenness to highly CSR-sensitive customers, the high-greenness manufacturer principally distorts her CSR effort downward to an extent unprofitable for the low-greenness manufacturer to mimic and subordinately distorts the wholesale price downward to counter CSR-induced demand decrement and mitigate CSR cost pass-through downstream. Finally, the win-win encroachment pattern is characterized by encroachment profit and signal expense sharing, with encroachment strengthening downward-distorted signaling while signaling weakens the CSR effect. These insights contribute valuable guidance for green manufacturers in CSR decision-making, which functions as a component of green signaling and facilitates transitioning to dual-channel sustainable supply chains.

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Publication Details

Journal
Journal of theoretical and applied electronic commerce research
Published
2024-08-26
DOI
https://doi.org/10.3390/jtaer19030103
Citations
1
Primary Topic
Sustainable Supply Chain Management
Type
article
Field-Weighted Citation Impact
0.55

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article

Manufacturer Encroachment on a Sustainable Supply Chain under Asymmetric Green Information

Yufei Hu, Lianghua Chen, DU Xiao-rong
1 citations
Journal of theoretical and applied electronic commerce research
Sustainable Supply Chain Management
0.55
article

Manufacturer Encroachment on a Sustainable Supply Chain under Asymmetric Green Information

Yufei Hu, Lianghua Chen, DU Xiao-rong
article en
1 citations

Abstract

This paper investigates manufacturer encroachment on a sustainable supply chain, where the manufacturer holds exclusive information on product greenness and is responsible for both corporate social responsibility (CSR) and greening. The manufacturer and the retailer play a signaling game whereby CSR effort and wholesale price serve as joint green signals. Findings reveal that, firstly, encroachment induces higher CSR efforts from manufacturers. When customers exhibit a strong CSR preference, the resulting CSR increment leads to increased offline demand and drives up both wholesale and retail prices in a mutually beneficial manner. This phenomenon is referred to as the CSR effect, yielding a win-win encroachment. Secondly, when signaling product greenness to highly CSR-sensitive customers, the high-greenness manufacturer principally distorts her CSR effort downward to an extent unprofitable for the low-greenness manufacturer to mimic and subordinately distorts the wholesale price downward to counter CSR-induced demand decrement and mitigate CSR cost pass-through downstream. Finally, the win-win encroachment pattern is characterized by encroachment profit and signal expense sharing, with encroachment strengthening downward-distorted signaling while signaling weakens the CSR effect. These insights contribute valuable guidance for green manufacturers in CSR decision-making, which functions as a component of green signaling and facilitates transitioning to dual-channel sustainable supply chains.

Journal of theoretical and applied electronic commerce researchVol. 19(3)
Hohai University (CN), Southeast University (CN)
National Natural Science Foundation of China
Openalex Percentile: Top 23%
Sustainable Supply Chain Management
0.55
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Manufacturer Encroachment on a Sustainable Supply Chain under Asymmetric Green Information — Yufei Hu, Lianghua Chen, et al. · Journal of theoretical and applied electronic commerce research (2024) | TGRS Research Map | TGRS