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Article

Chao Yu, Chuanxu Wang and Suyong Zhang

This paper aims to analyze the impact of the cost coefficient of product emission reduction, coefficient of low-carbon product advertising effort cost, and sharing ratio…

Abstract

Purpose

This paper aims to analyze the impact of the cost coefficient of product emission reduction, coefficient of low-carbon product advertising effort cost, and sharing ratio of low-carbon product advertising effort cost on the profit of a dual-channel supply chain. After determining the best model and relevant influencing factors, the paper puts forward corresponding management inspirations and suggestions.

Design/methodology/approach

The paper opts for an exploratory study using Stackelberg game theory to construct a centralized decision-making (MC mode), a low carbon product advertising effort cost free sharing decentralized decision-making (SD model) and a low carbon product advertising effort cost sharing decentralized decision-making (JD model) game model. Through using optimization methods to get the equilibrium solution, the relevant management suggestions are obtained by comparison analysis.

Findings

The paper shows that the JD model is better than the SD model in terms of the profits of the manufacturer, retailer and supply chain, and the improvement of Pareto is realized. The proportion of cost sharing of low carbon product advertising effort is positively related to the wholesale price and direct influence coefficient of low carbon product advertising effort on channel, while negatively related to the retail price and the cross influence coefficient of low carbon product advertising effort on alternative channels. Under the JD model, the manufacturer can reduce advertising costs through improving the efficiency and pertinence of direct channel advertising and urging the retailer to do a better job in sales management to improve gross margin and require the retailer to increase advertising efficiency and pertinence of retail channel to reduce advertising costs of retail channel and other ways to increase their profits. The retailer can make use of its advantages closer with consumers to improve the efficiency and pertinence of advertising in the retail channel to raise the influence coefficient of advertising and reduce the advertising cost in the retail channel.

Originality/value

The innovations of this paper are listed as follows: First, it has considered advertising investment from both the manufacturer and the retailer simultaneously. Second, it has considered a low-carbon background to investigate cooperative advertising decision for low-carbon products. Third, it has considered the decision on the level of product emission reduction and the level of low-carbon product advertising effort investment simultaneously.

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Article

Bin Shen, Xuemei Ding, Lizhu Chen and Hau Ling Chan

This paper aims to discuss the low carbon supply chain practices in China’s textile industry. To curb greenhouse gas emissions, the Chinese government has launched…

Abstract

Purpose

This paper aims to discuss the low carbon supply chain practices in China’s textile industry. To curb greenhouse gas emissions, the Chinese government has launched restrict regulatory system and imposed the energy consumption constraint in the textile industry to guarantee the achievability of low carbon economy. The authors aim to examine how the energy consumption constraint affects the optimal decisions of the supply chain members and address the supply chain coordination issue.

Design/methodology/approach

The authors conduct two case studies from Chinese textile companies and examine the impact of energy consumption constraints on their production and operations management. Based on the real industrial practices, the authors then develop a simple analytical model for a low carbon supply chain in which it consists of one single retailer and one single manufacturer, and the manufacturer determines the choice of clean technology for energy efficiency improvement and emission reduction.

Findings

From the case studies, the authors find that the textile companies develop clean technologies to reduce carbon emission in production process under the energy consumption enforcement. In this analytical model, the authors derive the optimal decisions of the supply chain members and reveal that supply chain coordination can be achieved if the manufacturer properly sets the reservation wholesale price (WS) despite the production capacity can fulfill partial market demand under a WS (or cost sharing) contract. The authors also find that the cost-sharing contract may induce the manufacturer to increase the investment of clean technology and reduce the optimal WS.

Originality/value

This paper discusses low carbon supply chain practices in China’s textile industry and contributes toward green supply chain development. Managerial implications are identified, which are beneficial to the entire textile industry in the developing countries.

Details

Supply Chain Management: An International Journal, vol. 22 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

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Article

Chunguang Bai, Joseph Sarkis and Yijie Dou

This paper aims to introduce a joint DEMATEL and NK methodology to develop a process model for introducing and implementing relational supply chain practices for low-carbon

Abstract

Purpose

This paper aims to introduce a joint DEMATEL and NK methodology to develop a process model for introducing and implementing relational supply chain practices for low-carbon supply chains. Using this process model as a guide, insights into specific practices and how to implement these relational practices to achieve competitive advantage across organizations are introduced.

Design/methodology/approach

Low-carbon cooperation practices framework based on the relational view is developed. A methodology based on DEMATEL and the NK model is used to construct a sequential process model for introducing and implementing these relational practices. Empirical data from three manufacturing organizations in China are utilized to validate the model.

Findings

Initial results provide a sequence of relational practices for guiding those organizations and their suppliers for healthy and low-carbon development. Interdependencies between relational practices are analyzed and evaluated from four aspects. Insights into the broader application of the methodology and initial results from both a research and managerial perspective are presented, especially with consideration of the China, an emerging economy, context.

Research limitations/implications

The methodology remains relatively abstract in nature, yet the tool can provide very useful interpretations and information for both researchers and practitioners.

Practical implications

This paper stipulates that in addition to internal operational practices, the relational practices between buyer and supplier may be equally important to achieve a low-carbon outcome, especially in supply chain setting. This paper also shows that not only the relational practice itself but also the implementation sequence of the relational practices can relate to performance. According to the authors’ initial results, organizations in this study should first develop product development cooperation, then exchange carbon knowledge and implement effective governance and last build a trust relationship with its suppliers for low-carbon cooperation.

Originality/value

This is one of the few approaches that directly evaluates and identifies the interdependencies among relational practices and to construct a process model for introducing and implementing low-carbon supply chain cooperation. It is also the first time that the NK model has been integrated with DEMATEL. Focusing on Chinese supply chain carbon emissions concerns is also a unique perspective.

Details

Supply Chain Management: An International Journal, vol. 22 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

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Article

Chiranjit Das and Sanjay Jharkharia

The purpose of this paper is to empirically examine the relationships between low carbon supply chain practices and their relationships with environmental sustainability…

Abstract

Purpose

The purpose of this paper is to empirically examine the relationships between low carbon supply chain practices and their relationships with environmental sustainability (ES) and the economic performances (EP) of firms. The study also includes an examination of the low carbon supply chain practices that are utilized by Indian manufacturing firms.

Design/methodology/approach

Through a questionnaire-based survey, the data received from 83 Indian manufacturing firms was analyzed using a variance-based structural equation modeling technique to test the proposed hypotheses.

Findings

The study indicates that carbon governance is a strategic imperative for the adoption of low carbon supply chain practices. Similarly, low carbon product and process design (LCPPD), manufacturing and logistics lead to improved ES. In addition, low carbon purchasing is positively related to the adoption of LCPPD, manufacturing and logistics. No significant relationship was found between the adoption of low carbon supply chain practices and the EP of a firm.

Practical implications

The findings of this study may assist manufacturing managers in prioritizing operational practices for the reduction of emissions.

Originality/value

This study provides two major contributions to green supply chain management. First, it provides comprehensive empirical evidence on low carbon supply chain practices that are being followed by Indian manufacturing firms. Second, this study also empirically validated a structural model of low carbon supply chain practices.

Details

South Asian Journal of Business Studies, vol. 8 no. 1
Type: Research Article
ISSN: 2398-628X

Keywords

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Article

Chuanxu Wang, Qiaoyu Peng and Lang Xu

This paper aims to explore how upstream supply chain companies will control the carbon emissions and price decisions of products when the government implements…

Abstract

Purpose

This paper aims to explore how upstream supply chain companies will control the carbon emissions and price decisions of products when the government implements environmental tax policy on consumers. It provides some suggestions to control carbon emissions for the government and manufacturers.

Design/methodology/approach

This study establishes two-echelon Stackelberg game models with and without the implementation of environmental tax policy on consumers in a centralized scenario and a decentralized scenario. Through the comparative analysis of the four models, the optimal emission abatement and pricing strategies are obtained.

Findings

This paper concludes that implementing environmental tax policy on consumers within the market’s acceptable range is more beneficial to the retailer and the environment, as well as the overall social welfare, except for the manufacturer. Moreover, consumer’s low-carbon preference always has a broader impact on carbon abatement and corporate profits than environmental tax coefficient. Finally, the side-payment self-executing contract can effectively ensure that the supply chain members make rational decisions spontaneously while achieving a win-win solution of centralized scenario.

Originality/value

This paper first considers how the government’s environmental tax policy on consumers will affect the decision-making of supply chain companies, and proposes an improved side-payment self-enforcing contract to maximize environmental and economic benefits of centralized scenario. In addition, it provides a reference for the government to adopt both the carbon cap policy and the environmental tax policy.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

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Article

Sudhir Ambekar, Anand Prakash and Vishal Singh Patyal

The purpose of this paper is to propose a low carbon culture (LCC) adoption model for gaining the right carbon capabilities by integrating the dimensions of flexibility or…

Abstract

Purpose

The purpose of this paper is to propose a low carbon culture (LCC) adoption model for gaining the right carbon capabilities by integrating the dimensions of flexibility or control and external or internal of competing values framework (CVF) with that of level of carbon emission (LCE).

Design/methodology/approach

This study reviewed literature related to low carbon supply chain, CVF and carbon capabilities to synthesize currently available frameworks for assessing culture and carbon-related insights. Based on these insights, this study proposes the carbon culture adoption model and presents some research propositions.

Findings

This study has extended categorization of culture suggested in CVF from four categories to eight distinct categories by adding “LCE” as a third dimension. The new categories of carbon culture are: “Red,” “Antagonist,” “Obligatory,” “Early Adopter,” “Follower,” “Transitive,” “Pragmatist” and “Green.” This categorization of organizations would help in selecting appropriate low carbon practices (LCPs).

Research limitations/implications

This study presents purely conceptual framework with some research propositions which needs to be empirically tested.

Practical implications

Organizations can formulate right policies for low carbon capabilities based on the LCC of their supply chain.

Originality/value

With increasing awareness about environment across stakeholders, organizations around the world are under pressure to reduce their carbon footprints. The extent of reduction in carbon footprints depends on the right capabilities across the supply chain which in turn depends on selection of the right combination of LCPs based on the supply chain culture.

Details

Journal of Manufacturing Technology Management, vol. 30 no. 1
Type: Research Article
ISSN: 1741-038X

Keywords

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Article

Chiranjit Das and Sanjay Jharkharia

The purpose of this paper is to review the relevant literature on low carbon supply chain management (LCSCM) and classify it on contextual base. It also aims at…

Abstract

Purpose

The purpose of this paper is to review the relevant literature on low carbon supply chain management (LCSCM) and classify it on contextual base. It also aims at identifying key decision-making issues in LCSCM. This paper also highlights some of the future challenges and scope of research in this domain.

Design/methodology/approach

A content analysis is carried out by systematically collecting the literature from major academic sources over a period of 18 years (2000-2017), identifying structural dimensions and classifying it on contextual base.

Findings

There is an increasing trend of research on LCSCM, but this research is still in a nascent stage. All supply chain functions such as supplier selection, inventory planning, network design and logistic decisions have been redefined by integrating emissions-related issues.

Research limitations/implications

Limitation of this study is inherent in its unit of analysis. Only peer-reviewed journal articles published in English language have been considered in this study.

Practical implications

Findings of prior studies on low carbon inventory control, transportation planning, facility allocation, location selection and supply chain coordination have been highlighted in this study. This will help supply chain practitioners in decision making.

Originality/value

Though there are an increasing number of studies about carbon emission-related issues in supply chain management, the present literature lacks to provide a review of the overarching publications. This paper addresses this gap by providing a comprehensive review of literature on emissions-related issues in supply chain management.

Details

Journal of Manufacturing Technology Management, vol. 29 no. 2
Type: Research Article
ISSN: 1741-038X

Keywords

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Article

Xu Chen and Xiaojun Wang

In the era of climate change, industrial organizations are under increasing pressure from consumers and regulators to reduce greenhouse gas emissions. The purpose of this…

Abstract

Purpose

In the era of climate change, industrial organizations are under increasing pressure from consumers and regulators to reduce greenhouse gas emissions. The purpose of this paper is to examine the effectiveness of product mix as a strategy to deliver the low carbon supply chain under the cap-and-trade policy.

Design/methodology/approach

The authors incorporate the cap-and-trade policy into the green product mix decision models by using game-theoretic approach and compare these decisions in a decentralized model and a centralized model, respectively. The research explores potential behavioral changes under the cap-and-trade in the context of a two-echelon supply chain.

Findings

The analysis results show that the channel structure has significant impact on both economic and environmental performances. An integrated supply chain generates more profits. In contrast, a decentralized supply chain has lower carbon emissions. The cap-and-trade policy makes a different impact on the economic and environmental performances of the supply chain. Balancing the trade-offs is critical to ensure the long-term sustainability.

Originality/value

The research offers many interesting observations with respect to the effect of product mix strategy on operational decisions and the trade-offs between costs and carbon emissions under the cap-and-trade policy. The insights derived from the analysis not only help firms to make important operational and strategic decisions to reduce carbon emissions while maintaining their economic competitiveness, but also make meaningful contribution to governments’ policy making for carbon emissions control.

Details

Industrial Management & Data Systems, vol. 117 no. 10
Type: Research Article
ISSN: 0263-5577

Keywords

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Article

Xiaohong Liu, Cheng Qian and Shenghui Wang

This paper draws on the perspective of social networks to examine when 3PLs initiate low-carbon supply chain integration (LCSCI) in decarbonising supply chains.

Abstract

Purpose

This paper draws on the perspective of social networks to examine when 3PLs initiate low-carbon supply chain integration (LCSCI) in decarbonising supply chains.

Design/methodology/approach

A questionnaire survey was conducted on a sample of 348 Chinese 3PLs. Stepwise regression was adopted to analyse the data.

Findings

It is found that LCSCI has a positive effect on firm performance. From the social network perspective, a larger scope of outsourcing increases 3PLs' embeddedness, which increases their chance of success in initiating LCSCI, especially for 3PLs with higher decarbonisation capabilities. Interestingly, although the pressure from government regulation can also motivate LCSCI, it is less effective for 3PLs with higher decarbonisation capabilities because they can be too embedded in the network to freely adapt to regulations.

Research limitations/implications

This study has investigated 3PL-initiated LCSCI only from the view of 3PLs. A dyadic approach which includes the perception of customers would be desirable.

Practical implications

The results highlight the critical role of 3PLs as supply chain orchestrators in decarbonising supply chains, and the effectiveness of LCSCI as a competitive strategy of 3PLs. Coercive pressures from government regulations are not constraints but resources for 3PLs in initiating LCSCI, especially in markets where the 3PLs have insufficient decarbonisation capabilities.

Originality/value

This study contributes to theories on 3PLs' interorganizational low-carbon initiatives, LCSCI, and the paradox of social networks in supply chains.

Details

International Journal of Operations & Production Management, vol. 40 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

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Article

Qiang Hou and Jiayi Sun

The authors consider a dynamic emission-reduction technology investment decision-making problem for an emission-dependent dyadic supply chain consists of a manufacturer…

Abstract

Purpose

The authors consider a dynamic emission-reduction technology investment decision-making problem for an emission-dependent dyadic supply chain consists of a manufacturer and a retailer under subsidy policy for carbon emission reduction. The consumers are assumed to prefer to low-carbon products and formulate a supply chain optimal control problem.

Design/methodology/approach

The authors adopt differential game to analyze investment strategies of cost subsidy coefficient with respect to vertical incentive of a manufacturer and a retailer. A comparison analysis under four different decision-making situations, including decentralized decision-making, centralized decision-making, maximizing social welfare, is obtained.

Findings

The results show that the economic benefit and environmental pressure have a win–win performance in centralized decision-making. In four different game models, equilibrium strategies, profits and social welfare show changing diversity and have a consistent development trend as time goes on.

Research limitations/implications

The authors estimate the demand function is a linear function in this paper. According to the consumers’ preference to low-carbon products, consumer’s awareness meets the law of diminishing marginal utility like advertising goodwill accumulation. The carbon-sensitive coefficient might be a quadratic expression, which will complicate the problem and be consistent with reality.

Practical implications

It captures that there is a necessity to strengthen cooperation and exchange of carbon emission technology among the enterprises by simulation of different decision-makings when government granted cost subsidy.

Social implications

The results provide significant guidelines for the supply chain to make decision-makings of emission-reduction technology investment and relevant government departments to determine emission subsidies costs.

Originality/value

An endogenous subsidies coefficient is produced by the social welfare function. Distinguished from previous study, it also considered the influences of carbon emission trade policy and consumer preference.

Details

Kybernetes, vol. 49 no. 2
Type: Research Article
ISSN: 0368-492X

Keywords

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