Contractor Cooperation Mechanism and Evolution of the Green Supply Chain in Mega Projects

Jianbo Zhu, Miao Fang, Qianqian Shi, Peng Wang and Qian Li
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Jianbo Zhu: School of Management and Engineering, Nanjing University, Nanjing 210093, China
Miao Fang: School of Management and Engineering, Nanjing University, Nanjing 210093, China
Qianqian Shi: School of Management and Engineering, Nanjing University, Nanjing 210093, China
Peng Wang: School of Design and the Built Environment, Curtin University, Perth, WA 6102, Australia
Qian Li: School of Management and Engineering, Nanjing University, Nanjing 210093, China

Sustainability, 2018, vol. 10, issue 11, 1-15

Abstract: The large scale of construction in mega projects leads to significant environmental and socioeconomic impacts; thus, the projects should also exhibit greater social responsibility. Adopting green supply chain management in the construction process is an important way to realize the goal of sustainable development of mega projects. Because the green supply chain behavior during construction is mainly demonstrated by contractors, it is especially important to study the evolutionary trend of their behavior. Thus, to explore the cooperative relationship among contractors, this paper considers a lengthy construction period, multi-agent participation dynamics, and opportunistic behavior—all are key features of mega projects—and establishes an evolutionary game model. Specifically, a replicator dynamic equation is used to describe the long-term effects of the contractor’s decisions. Equilibrium determinants are then analyzed and simulated. The results show that the initial probabilities of the two types of contractors (main contractor and subcontractor) demonstrating opportunistic behaviors have a significant effect on the direction of evolution of the mega project. The main contractor, who dominates the subsidy allocation by the government and project owner, should pay attention to maintaining a balance in the income distribution between him or her and the subcontractor. Additionally, there is an optimal distribution coefficient for the subsidy that minimizes the overall probability of opportunistic behavior. This paper provides a point of reference for the decisions of the main contractor and the subcontractor in the green supply chain of mega projects.

Keywords: mega projects; green supply chain; cooperation mechanism; evolution (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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