Manufacturer-driven or platform-driven: Dynamic green innovation analysis in a competing supply chain

Platform-driven green innovation presents an intriguing business model that enables manufacturers to offer environmentally friendly products. This paper examines the competition between a green product and a non-green product, both sold through a retail platform. It explores two scenarios: green innovation driven by the manufacturer or by the platform. Based on chaos theory, the equilibrium solutions and their asymptotic stability conditions are provided. By comparing the equilibrium solutions in these scenarios, we find that platform-driven innovation is particularly effective when the manufacturer’s green innovation capabilities are weak or when the innovation is costly. Additionally, when market demand is relatively low, platform-driven innovation can attain a higher level. Lastly, we analyze the stability of both platform-and manufacturer-driven green innovation systems, concluding that the platform-driven model demonstrates superior stability.