Analysis of power dynamics in sustainable supply chain under non-linear demand setup

Varun Sharma (), Alok Raj () and Abhishek Chakraborty ()
Additional contact information
Varun Sharma: XLRI Xavier School of Management, Jamshedpur
Alok Raj: XLRI Xavier School of Management, Jamshedpur
Abhishek Chakraborty: XLRI Xavier School of Management, Jamshedpur

Operations Management Research, 2023, vol. 16, issue 1, No 2, 18-32

Abstract: Abstract This paper investigates joint sustainability initiatives and power dynamics in a sustainable supply chain. The study considers a dyadic supply chain under a non-linear demand setup. It develops and analyzes nine different decentralized scenarios arising from different joint sustainability efforts and power structures. The study evaluates supply chain agents’ sustainability efforts, pricing strategies, and profits under various scenarios and subsequently compares them to obtain the most preferred strategy. The findings show that the supply chains structure significantly influences players’ sustainability efforts and profits in a supply chain. We also compare the players’ profit between different structures of power dynamics, and the results reveal that if a player is responsible for greening efforts and holds a leadership position, it always leads to a win-win situation for supply chain agents. Interestingly our study also formulates the Hawk and Dove strategic leadership game. The study attempts to coordinate the supply chain using contract mechanisms. It reveals that the revenue sharing mechanism fails to coordinate the supply chain. Thus, the study proposes a hybrid contract to coordinate the sustainable supply chain. This paper provides a nuanced understanding to managers to share sustainability responsibility with supply chain partners and choose the right leadership decisions for a sustainable supply chain.

Keywords: Sustainable supply chain; Non-linear demand setup; Power dynamics; Game theory (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s12063-022-00268-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:opmare:v:16:y:2023:i:1:d:10.1007_s12063-022-00268-6

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/12063

DOI: 10.1007/s12063-022-00268-6

Access Statistics for this article

Operations Management Research is currently edited by Jan Olhager and Scott Shafer

More articles in Operations Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().