Zhishan Yan, Haiqing Hu, Zhaoqun Wang, Zhikang Liang and Weiwei Kong
This paper aims to explore the effect of different government subsidy decisions and the differences between the consequences of these decisions when supply chain members engage in…
Abstract
Purpose
This paper aims to explore the effect of different government subsidy decisions and the differences between the consequences of these decisions when supply chain members engage in cooperative green innovation through cost-sharing arrangements.
Design/methodology/approach
This paper investigates the optimal decisions for green supply chains under two types of subsidies, including subsidies for green innovation research and development (R&D) costs and subsidies for consumers, by integrating game theory with numerical simulation.
Findings
The optimal R&D cost-sharing ratio is found to be 2/3 for manufacturers and 1/3 for retailers. Under any subsidy policy, the supply chain can achieve maximum total profit. When the supply chain adopts the optimal R&D cost-sharing ratio, subsidies for green innovation R&D costs prove to be the most effective in increasing the supply chain’s profit. However, from the perspective of total social welfare, the analysis reveals that government subsidies to consumers are more beneficial for promoting overall social welfare.
Originality/value
Previous studies on green supply chain decisions have primarily focused on either government subsidies or corporate cost sharing in isolation. In contrast, this study combines both government subsidies and cost sharing within a unified framework for a more comprehensive analysis. Additionally, this paper examines the impact of government subsidies on supply chain cost-sharing decisions and their effect on overall social welfare while considering the presence of cost sharing and using the combination of theoretical modeling and simulation analysis.
Details
Keywords
Karthik Bajar, Aditya Kamat, Saket Shanker and Akhilesh Barve
In recent times, reverse logistics (RL) is gaining significant traction in various automobile industries to recapture returned vehicles’ value. A good RL program can lower…
Abstract
Purpose
In recent times, reverse logistics (RL) is gaining significant traction in various automobile industries to recapture returned vehicles’ value. A good RL program can lower manufacturing costs, establish a green supply chain, enhance customer satisfaction and provide a competitive advantage. However, reducing disruptions and increasing operational efficiency in the automobile RL requires implementing innovative technology to improve information flow and security. Thus, this manuscript aims to examine the hurdles in automobile RL activities and how they can be effectively tackled by blockchain technology (BCT). Merging BCT and RL provides the entire automobile industry a chance to generate value for its consumers through effective vehicle return policies, manufacturing cost reduction, maintenance records tracking, administration of vehicle information and a clear payment record of insurance contracts.
Design/methodology/approach
This research is presented in three stages to accomplish the task. First, previous literature and experts' opinions are examined to highlight certain factors that are an aggravation to BCT implementation. Next, this study proposed an interval-valued intuitionistic fuzzy set (IVIFS) – decision-making trial and evaluation laboratory (DEMATEL) with Choquet integral framework for computing and analyzing the comparative results of factor interrelationships. Finally, the causal outline diagrams are plotted to determine the influence of factors on one another for BCT implementation in automobile RL.
Findings
This study has categorized the barriers to BCT implementation into five major factors – operational and strategical, technical, knowledge and behavioral, financial and infrastructural, and government rules and regulations. The results revealed that disreputable technology, low-bearing capacity of IT systems and operational inefficiency are the most significant factors to be dealt with by automobile industry professionals for finer and enhanced RL processes utilizing BCT. The most noticeable advantage of BCT is its enormous amount of data, permitting automobile RL to develop client experience through real-time data insights.
Practical implications
This study reveals several factors that are hindering the implementation of BCT in RL activities of the automobile industry. The results can assist experts and policymakers improve their existing decision-making systems while making an effort to implement BCT into the automobile industry's RL activities.
Originality/value
Although there are several studies on the benefits of BCT in RL and the adoption of BCT in the automobile industry, individually, none have explicated the use of BCT in automobile RL. This is also the first kind of study that has used IVIFS-DEMATEL with the Choquet integral framework for computing and analyzing the comparative results of factor interrelationships hindering BCT implementation in automobile RL activities.