Aligning digital investment with CSR in dual-channel operations: a game-theoretic analysis of supply chain performance

Purpose With the intensification of market competition and the widespread adoption of the dual-channel model, the interaction among pricing, services, and digital investment in the supply chain has become crucial. The influence of corporate social responsibility (CSR) and digital transformation is also becoming increasingly significant. The purpose of this paper is to explore the collaborative decision-making mechanism for digital investment, CSR undertakings, and retail service levels in a manufacturer-led dual-channel supply chain. Design/methodology/approach The study uses game theory to develop a supply chain model for manufacturers to fulfill CSR, compare and analyze the equilibria under centralized and decentralized decision-making, and extend the model for retailers to fulfill CSR. Findings The consumer's CSR sensitivity significantly affects the benefits of CSR behavior, and centralized decision-making is always superior; under conditions related to CSR sensitivity, digital investment is positively correlated with manufacturer profits. The study further indicates that in low-sensitivity markets, it is more beneficial for retailers to undertake CSR, and the level of digital investment is higher. The relationship between digital investment and CSR, however, is the opposite of how manufacturers implement CSR. In contrast, in high-sensitivity markets, it is more effective for manufacturers to undertake it. In addition, this paper designs a coordination contract based on wholesale prices and clarifies the pricing range that can achieve a win-win situation. Originality/value The innovation of this study lies in integrating digital investment and CSR into a dual-channel decision-making process and systematically comparing the impact of different CSR undertaking entities on supply chain performance. This provides enterprises with collaborative management insights to promote responsible governance and digital transformation.