A coordination mechanism through relational contract in a two-echelon supply chain

Yong Liu, Zhi-yang Liu, Wen-wen Ren and Jeffrey Yi Lin Forrest

Journal of Retailing and Consumer Services, 2020, vol. 56, issue C

Abstract: To promote social responsibilities of transnational corporation within the present world where such necessary corporation is seriously missing, this paper explores issues of decision-making and coordination of such a two-echelon supply chain that consists of a contract supplier and a dominant manufacturer. Considering the main reasons behind the lack of social responsibilities of multinational corporations, this work develops a model with punishment. Based on this model, we obtain the optimal decision for the supply-chain members under either decentralized decision-making or centralized decision-making. And we analyze whether the penalty rate will have an impact on the input of corporate social responsibility and how it will affect the self-interests of supply chain members. Ultimately, by exploring the decision variables of companies that practice stronger corporate social responsibility, we compare and analyze our models to draw several interesting and practically useful conclusions.

Keywords: Punishment; Corporate social responsibility; Double standard; Game theory; Transnational corporation (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0969698919312974
Full text for ScienceDirect subscribers only

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:eee:joreco:v:56:y:2020:i:c:s0969698919312974

DOI: 10.1016/j.jretconser.2020.102156

Access Statistics for this article

Journal of Retailing and Consumer Services is currently edited by Harry Timmermans

More articles in Journal of Retailing and Consumer Services from Elsevier
Bibliographic data for series maintained by Catherine Liu ().