Selection Strategy and Coordination of Green Product R&D in Sustainable Competitive Supply Chain

Qinghua Feng and Tong Liu
Additional contact information
Qinghua Feng: School of Information, Xi’an University of Finance and Economics, Xi’an 710100, China
Tong Liu: School of Information, Xi’an University of Finance and Economics, Xi’an 710100, China

Sustainability, 2022, vol. 14, issue 14, 1-22

Abstract: Green product R&D is a necessary measure for enterprises to achieve sustainable development. This paper studies the optimal selection strategy of green product R&D and the impact of price competition and green R&D cost on prices, green levels, and enterprise profits in the sustainable competitive supply chain. We establish manufacturer-led game models and compare the equilibrium results of green R&D strategies. The study found that three types of green product R&D strategies exist in competitive supply chains: neither conduct green product R&D (NN), only one supply chain conducts green product R&D (YN), and both conduct green product R&D (YY). Price competition intensity and green R&D cost have a negative impact on prices, green levels, and enterprise profits. Wholesale prices, retail prices, green levels, and enterprise profits are highest in YY strategy, but they are lowest in NN strategy. When one supply chain does not conduct green product R&D, the other supply chain will choose green product R&D only if the green R&D cost meets certain condition. When one supply chain conducts green product R&D, the optimal choice for the other supply chain is always to conduct green product R&D. For the optimal selection strategies, applying two-part pricing contracts achieve supply chain coordination. Our research results provide a reference for the strategic choice of green product R&D in competitive supply chains.

Keywords: green R&D; sustainable supply chain; price competition; two-part pricing; coordination (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/14/8884/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/14/8884/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:14:p:8884-:d:867212

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().