Weihua Liu, Zhixuan Chen, Tsan-Ming Choi, Paul Tae-Woo Lee, Hing Kai Chan and Yongzheng Gao
This study aims to explore the impact of carbon neutral announcements on “stock market value” of publicly listed companies in China.
Abstract
Purpose
This study aims to explore the impact of carbon neutral announcements on “stock market value” of publicly listed companies in China.
Design/methodology/approach
The event study approach is adopted. Market, market-adjusted, Carhart four-factor model and a cross-sectional regression model are employed to examine the impacts of carbon neutral announcements on “stock market value” of Chinese companies based on data from 188 carbon neutral announcements.
Findings
Carbon neutral announcements positively impact Chinese shareholder value. Carbon neutral announcements at the strategic level have a more positive and significant impact on Chinese stock market value. Innovative carbon neutral announcements do not significantly cause Chinese stock market reactions. Companies have more positive and significant stock market reactions when the companies make carbon neutral announcements that reflect high supply chain network resilience and heterogeneity and strong supply chain network relationships.
Practical implications
The findings uncover the business value of carbon neutral activities and provide operations managers in developing countries insights into how to improve enterprises' market value by actively implementing carbon neutral activities.
Originality/value
This paper is the first trial to apply an event study to examine the relationship between carbon neutral announcements and Chinese stock market value from the perspective of announcement level and type and supply chain networks. This paper introduces corporate reputation theory and enriches the application of corporate reputation theory in the field of low-carbon environmental protections and supply chains.
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Weihua Liu, Shangsong Long and Jingkun Wang
As a disruptive technology, blockchain technology brings new opportunities and challenges to operations management. We aim to examine the influences of blockchain cooperation…
Abstract
Purpose
As a disruptive technology, blockchain technology brings new opportunities and challenges to operations management. We aim to examine the influences of blockchain cooperation project announcements (BCPAs) on firms’ stock market reactions in an emerging market. From 2016 to 2021, a total of 113 BCPAs of listed firms from the Chinese A-share market are selected as samples.
Design/methodology/approach
This study is based on the loose coupling theory and uses the event study method and probit regression analysis.
Findings
We find BCPAs positively affect the firm’s stock price on the day they are released. Compared with vertical BCPAs in a supply chain, horizontal BCPAs exert a more positive market reaction. Moreover, a BCPA with a partner within a shorter geographical distance exerts a more positive influence on market reaction. Contrary to the intuition of the decentralized blockchain feature that one-to-many cooperation leads to better benefits, one-to-one BCPAs exert a more positive effect on market reaction than one-to-many BCPAs. We further find that (1) industry type has a certain impact on cooperation mode selection, and (2) manufacturing firms are more inclined to choose one-to-one cooperation than those in service industry.
Originality/value
We focus on the impact of blockchain cooperative announcements and additionally use the probit regression models to analyze the influencing factors of cooperation mode selection and find the critical role of the industry type, which complements the existing empirical research on blockchain announcements and is conducive to provide decision-making reference for managers.
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Blockchain-driven supply chain finance (BCT-SCF) has recently been receiving increased global attention. A number of business programmes have been carried out using this approach…
Abstract
Purpose
Blockchain-driven supply chain finance (BCT-SCF) has recently been receiving increased global attention. A number of business programmes have been carried out using this approach, but existing research has rarely focussed on this novel SCF model. This paper aims to fill this gap by proposing a mathematical model to analyse the value of BCT-SCF.
Design/methodology/approach
First, this paper considers a multi-period two-echelon supply chain consisting of a capital-constrained supplier and a newsvendor-like retailer. Then, two financing channels are proposed. The supply chain actors can either factor accounts receivable (AR) from a bank or obtain financing through a BCT-SCF platform by which AR can be converted into a bill receivable and used to make payment. Further, to investigate the preferences of all actors between the two financing channels, this paper compares the two channels and examines how the degree of financial constraints and the cost of implementing the BCT-SCF model impact the financing preferences of all actors.
Findings
BCT-SCF model can help a supply chain realise its optimisation both in production and financing efficiency, the preference for the BCT-SCF model increases as the initial capital of supplier and the BCT-SCF platform usage fee rate decrease.
Practical implications
This research bridges the gap between theoretical analysis of BCT-SCF and its realistic application. The results demonstrate that with the BCT-SCF model, a win-win situation among supply chain actors is possible, which is helpful for the supply chain to choose a more efficient financing channel.
Originality/value
This research introduces a mathematical model based on the “receivable chain” of CZBank and the model is set in a multi-period supply chain, which is the first time BCT-SCF has been considered as part of a more complex but realistic background setting.
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Xigang Yuan, Zujun Ma and Xiaoqing Zhang
This paper investigates the dynamic pricing strategy of a firm for the successive-generation products under the conditions of the limited trade-in duration and strategic…
Abstract
Purpose
This paper investigates the dynamic pricing strategy of a firm for the successive-generation products under the conditions of the limited trade-in duration and strategic customers. Further, it explores the effect of a limited trade-in duration on the choice of the myopic and strategic customers, besides the optimal dynamic pricing and trade-in strategy of the firm.
Design/methodology/approach
Based on the choice behavior of the myopic and strategic customers, the authors have developed a two-period game-theoretic analytical model to decide the optimal retail prices of the successive-generation products and the optimal trade-in rebate when the firm adopts a dynamic pricing strategy and then investigate three extensions of the basic model to discuss the change in the results owing to the relaxation of certain conditions.
Findings
The authors find from the results that, in terms of profit maximization, it is better to extend the limited trade-in duration, and hence, the firm should implement a dynamic pricing strategy. However, in the situation of using a static pricing strategy, the firm should extend the limited trade-in duration only if the incremental value of the new generation products is below a certain threshold. Moreover, the firm should use a dual rollover strategy instead of a single rollover one. If all customers in the market are myopic, then the firm should also extend the limited trade-in duration.
Research limitations/implications
This study mainly discusses the impact of limited trade-in duration on the firm's dynamic pricing strategy when facing strategic customers, which provides several directions for future research. First, if the government offers subsidies to consumers, how will strategic consumers make purchase decisions? How would the enterprise make its pricing decision? Second, when asymmetric information exists between consumers and firms, how will it affect consumers' choice behavior and firms' pricing decisions? All these issues are worth exploring in the future.
Practical implications
These results offer certain managerial insights for the firm in the decision making on pricing within the trade-in program.
Originality/value
This is the first work to study the dynamic pricing strategy of the firm for the successive-generation products under the conditions of the limited trade-in duration and strategic customers. Further, this work discusses the changes in results owing to the relaxation of certain conditions.
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Weihua Liu, Xinyun Liu and Tsan-Ming Choi
This study aims to explore the impact of supply chain quality event (SCQE) announcements on enterprises’ stock market value.
Abstract
Purpose
This study aims to explore the impact of supply chain quality event (SCQE) announcements on enterprises’ stock market value.
Design/methodology/approach
This study adopts the event study approach and analyzes the changes in shareholder value of companies listed in China based on data from 118 SCQE announcements. In the event study, the market, market-adjusted and Carhart four-factor models are used to estimate abnormal stock market returns, and a cross-sectional regression model is performed to examine the effects of SCQE announcements on enterprises’ stock market value.
Findings
SCQE announcements have a negative impact on shareholder value. From the perspective of the supply chain network structure, the market reacts more negatively to SCQE announcements issued by the enterprises with higher supply chain concentration. From the perspective of companies’ characteristics, announcements that do not reflect the establishment of supply chain quality cooperation have a more negative effect on stock market value, which indicates that the supply chain network structure and firm-level characteristic can moderate the market reaction.
Practical implications
The findings demonstrate a quantitative evaluation of how SCQE announcements affect the stock market value of listed companies and provide guidance for managers to enhance the value of SCQE announcements.
Originality/value
This study fills the research gap on the impact of SCQE announcements on stock market value by using secondary data and first explores the relationship between SCQE announcements and stock market value from the perspective of supply chain network. Furthermore, this study contributes to the literature on SCQE using an empirical study in China.
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Adegboyega Oyedijo, Simonov Kusi-Sarpong, Muhammad Shujaat Mubarik, Sharfuddin Ahmed Khan and Kome Utulu
Implementing sustainable practices in multi-tier supply chains (MTSCs) is a difficult task. This study aims to investigate why such endeavours fail and how MTSC partners can…
Abstract
Purpose
Implementing sustainable practices in multi-tier supply chains (MTSCs) is a difficult task. This study aims to investigate why such endeavours fail and how MTSC partners can address them.
Design/methodology/approach
A single-case study of a global food retail company was used in this study. Semi-structured interviews with the case firm and its first- and second-tier suppliers were used to collect data, which were then qualitatively analysed using thematic analysis.
Findings
Major barriers impeding the implementation of sustainability in multi-tier food supply chains were revealed such as the cost of sustainability, knowledge gap, lack of infrastructure and supply chain complexity. Furthermore, the findings reveal five possible solutions such as multi-tier collaboration and partnership, diffusion of innovation along the chain, supply chain mapping, sustainability performance measurement and capacity building, all of which can aid in the improvement of sustainability practices.
Research limitations/implications
Future research should investigate how specific barriers and drivers affect specific aspects of sustainability, pointing practitioners to specific links between the variables that can aid in tailoring sustainability oriented investment.
Practical implications
This research supports managerial comprehension of MTSC sustainability, pointing out ways to improve sustainability performance despite the complex multi-tier system of food supply chains.
Originality/value
The research on MTSC sustainability is still growing, and this research contributes to the debate about how MTSCs can become more sustainable from the perspective of the triple bottom line, particularly food supply chains which face significant sustainability challenges.
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This study considers transitive service triads, which consist of three dyads formed by three actors: supplier, logistics service provider and customer, who remain directly linked…
Abstract
Purpose
This study considers transitive service triads, which consist of three dyads formed by three actors: supplier, logistics service provider and customer, who remain directly linked by one or more of the upstream and downstream flows of products, information and finances. This paper aims to explore the link between information governance, decentralized information technologies and supply chain self-organization, and their resulting impact on network performance in the transitive service triads.
Design/methodology/approach
Drawing upon the tenets of the theory of complex adaptive systems and supply chain practice view, this paper involves an empirical investigation that uses survey data gathered from transitive service triads in the European countries. The study uses partial least squares structural equation modeling to estimate the formative-reflective hierarchical component model and test the research hypotheses.
Findings
Information governance defines how supply chain information flows are controlled, accessed and used by a focal organization and its business partners. As empirically evidenced in this study, it can be depicted as a latent construct consisting of three distinct dimensions of information custody, information ownership and right to data access. Likewise, the study also indicates that supply chain self-organization, as a second-order construct, consists of three interactive self-organization actions undertaken by specific firms participating in the triadic arrangement. Supply chain self-organization is thus produced by firms that are reciprocally interrelated and interacting, having effects on one another. Furthermore, the study also highlights that information governance creates an environment for applying decentralized information technologies, which then positively affects supply chain self-organization. Finally, the research also empirically operationalizes the construct of network performance within the transitive service triads.
Research limitations/implications
Although the results provide several major contributions to theory and implications for practitioners, the study still demonstrates some methodological constraints. Specifically, although the study uses a relatively large research sample of 350 transitive service triads, it still focuses only on a selected group of industries and is limited to investigating solely a particular type of service triads.
Originality/value
Given the increasing interest in investigating triads, this study examines how information governance and decentralized information technologies support supply chain self-organization to yield network performance in transitive service triads.
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This paper aims to focus on applications of stochastic linear programming (SLP) to managerial accounting issues by providing a theoretical foundation and practical examples. SLP…
Abstract
Purpose
This paper aims to focus on applications of stochastic linear programming (SLP) to managerial accounting issues by providing a theoretical foundation and practical examples. SLP models may have more implications – and broader ones – in industry practice than deterministic linear programming (DLP) models do.
Design/methodology/approach
This paper introduces both DLP and SLP methods. In addition, continuous and discrete SLP models are explained. Applications are demonstrated using practical examples and simulations.
Findings
This research work extends the current knowledge of SLP, especially concerning managerial accounting issues. Through numerical examples, SLP demonstrates its great ability of hedging against all scenarios.
Originality/value
This study serves as an addition to building a cumulative tradition of research on SLP in managerial accounting. Only a few SLP studies in managerial accounting have focused on the development of such an instrument. Thus, the measurement scales in this research can be used as the starting point for further refining the instrument of optimization in managerial accounting.
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Lorenzo Bruno Prataviera, Emilio Moretti and Elena Tappia
The postponement boundary problem entails that duties and cross-border trade complexity can lead companies to geographically postpone operations to downstream global facilities…
Abstract
Purpose
The postponement boundary problem entails that duties and cross-border trade complexity can lead companies to geographically postpone operations to downstream global facilities. The present study aims at investigating the problem to provide insights into the drivers behind the choice of different postponement strategies for global food supply chains.
Design/methodology/approach
A single case study was conducted considering an Italian company exporting olive oil toward the United States. Two global postponement strategies, previously formalized in the literature, were tailored for food supply chains. A multi-methodological approach was adopted, combining data obtained through exploratory case research with empirically grounded analytical modeling. A sensitivity analysis was also performed, to investigate outcomes related to the considered problem when changing key parameters.
Findings
Bulky and heavy packing materials account for a big percentage of finished products' volume and weight, and this can deeply affect strategies' cost-effectiveness. Postponing packaging operations could allow for taking advantage of lower tariffs levied on bulk goods, contributing to significantly lower duties to be paid. However, important trade-offs could arise related to the required investments, and the fiscal regulatory frameworks must be carefully examined.
Originality/value
This study offers an empirical investigation of the postponement boundary problem, which is largely unexplored in the current literature. It also tackles an understudied empirical context as global food supply chains. It summarizes the drivers behind and explores the costs related to the implementation of different strategies, offering an original quantitative approach that could support practitioners' decision-making. Lastly, it formalizes five propositions that could pave the way for further research inquiries.
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Under the carbon tax policy, the authors examine the operational decisions of the low-carbon supply chain with the triple bottom line.
Abstract
Purpose
Under the carbon tax policy, the authors examine the operational decisions of the low-carbon supply chain with the triple bottom line.
Design/methodology/approach
This paper uses the Stackelberg game theory to obtain the optimal wholesale prices, retail prices, sales quantities and carbon emissions in different cases, and investigates the effect of the carbon tax policy.
Findings
This study’s main results are as follows: (1) the optimal retail price of the centralized supply chain is the lowest, while that of the decentralized supply chain where the manufacturer undertakes the carbon emission reduction (CER) responsibility and the corporate social responsibility (CSR) is the highest under certain conditions. (2) The sales quantity when the retailer undertakes the CER responsibility and the CSR is the largest. (3) The supply chain obtains the highest profits when the retailer undertakes the CER responsibility and the CSR. (4) The environmental performance impact decreases with the carbon tax.
Practical implications
The results of this study can provide decision-making suggestions for low-carbon supply chains. Besides, this paper provides implications for the government to promote the low-carbon market.
Originality/value
Most of the existing studies only consider economic responsibility and social responsibility or only consider economic responsibility and environmental responsibility. This paper is the first study that examines the operational decisions of low-carbon supply chains with the triple bottom line under the carbon tax policy.