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Toward Sustainability: Supply Chain Collaboration and Governance
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Toward Sustainability: Supply Chain Collaboration and Governance

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Sustainable Transportation".

Deadline for manuscript submissions: closed (10 July 2018) | Viewed by 76117

Special Issue Editors

Prof. Dr. Chwen Sheu

E-Mail Website
Guest Editor
College of Business, Kansas State University, Manhattan, KS 66506, USA
Interests: sustainability; supply chain governance; supply chain relationship; supply chain analytics; innovation
Prof. Dr. Fei Ye

E-Mail Website
Guest Editor
School of Business Administration, South China University of Technology, Guangzhou, China
Interests: sustainability; supply chain coordination; supply chain optimization; service operations
Prof. Dr. Yuyin Yi

E-Mail Website
Guest Editor
School of Management, Jinan University, Guangzhou, China
Interests: green supply chain; sustainability; closed-loop supply chain with product remanufacturing; low-carbon supply chain

Special Issue Information

Dear Colleagues,

In practice, manufacturing sustainability is achieved through communication, coordination, and cooperation from the entire supply chain. Different terms have been used to describe the efforts of an extended supply chain, such as sustainable supply chain or green supply chain. Firms have gradually recognized the need for linking boundary-spanning activities (product stewardship, reverse logistics, collaborative planning) with supply chain partners, to address economic, environmental and social issues. The scholarly and managerial literature has offered constructive suggestions for developing and implementing supply chain management to improve operational and financial performance. What is less clear and requires more research is: What can firms do, and how, to improve environmental and social performance within their supply chains?

This Special Issue aims at contributing to the sustainability literature by answering this research question. In particular, we are interested in manuscripts that focus on the development, management, and governance of inter-organizational collaborative programs aimed at achieving the goals of sustainability. Covered topics include, but are not limited to, the effectiveness of various collaborative activities (e.g., supplier investment/training, co-process/product innovations, performance incentives), the effectiveness of control/governance mechanisms (contract, relationship) adopted to guide and monitor sustainable supply chain collaboration, the cross-country/culture comparison of sustainable supply chain collaboration and governance, the effects of organizational culture on sustainability collaboration and governance, the contingency factors of implementing sustainability collaboration and governance, etc.

Manuscripts that present novel discussion on recent developments, applications, and methodologies in the relevant areas are invited. Preference will be given to those studies that investigate multiple-tier, extending beyond dyadic, supply chain  and global sustainability collaboration and governance.

Prof. Dr. Chwen Sheu
Prof. Dr. Fei Ye
Prof. Dr. Yuyin Yi
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • Sustainability
  • Corporate social responsibility
  • Supply chain governance
  • Supply chain collaboration
  • Supplier management
  • Green supply chain
  • Sustainable supply chain
  • Triple bottom line

Published Papers (16 papers)

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Research

20 pages, 2551 KiB  
Article
External Intervention or Internal Coordination? Incentives to Promote Sustainable Development through Green Supply Chains
by Yang Tong and Yina Li
Sustainability 2018, 10(8), 2857; https://doi.org/10.3390/su10082857 - 11 Aug 2018
Cited by 16 | Viewed by 3132
Abstract
To encourage firms to engage in green production, two different types of investment funding, namely external funds from agencies outside the supply chain (e.g., government subsidy), and internal funds from supply chain partners (e.g., greening cost-sharing with the retailer), are investigated in this [...] Read more.
To encourage firms to engage in green production, two different types of investment funding, namely external funds from agencies outside the supply chain (e.g., government subsidy), and internal funds from supply chain partners (e.g., greening cost-sharing with the retailer), are investigated in this paper. Based on game theory, the decision-making behavior and profits of a competitive supply chain consisting of a green manufacturer, a regular manufacturer, and a retailer are analyzed under both funding schemes. The results show that while both government subsidy and greening cost-sharing contract can achieve the goals of increasing a product’s degree of greenness and increasing the sales of green products, there are differences between these two methods in reaching these goals. Further, both via theoretical and numerical analysis, we find that although both the green manufacturer and the retailer can greatly benefit from government subsidy and greening cost-sharing contract, they may have different preferences regarding these two methods, which are mainly related to the size of the government subsidy, the fraction of greening cost-sharing with the retailer, the Research and Development (R&D) cost coefficient, the greenness sensitivity coefficient, and price sensitivity coefficient. Finally, the supply chain members’ behaviors (including the production and pricing decisions and, the choice of funds investment) are largely affected by the government subsidy mechanism. Full article
(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)
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15 pages, 880 KiB  
Article
Governance Mechanisms for Green Supply Chain Partnership
by Chen-lung Yang and Suyuan Lien
Sustainability 2018, 10(8), 2681; https://doi.org/10.3390/su10082681 - 31 Jul 2018
Cited by 15 | Viewed by 3756
Abstract
The literature has recognized the value of green supply chain management in achieving the goals of environmental management. Yet developing and fostering sustainability partnerships among supply chain organizations remains challenging. Bounded rationality and opportunistic behaviors are likely to hinder joint sustainability collaboration and [...] Read more.
The literature has recognized the value of green supply chain management in achieving the goals of environmental management. Yet developing and fostering sustainability partnerships among supply chain organizations remains challenging. Bounded rationality and opportunistic behaviors are likely to hinder joint sustainability collaboration and performance. The literature has called for a better understanding of the governance of green supply chain collaboration. This study applies transactional cost economics as a conceptual framework to investigate the relationships among transaction features, governance mechanisms, and environmental performance. Using the data collected from 969 plants in 17 countries, the statistical analysis compares and validates the effectiveness of three alternative governance mechanisms: contractual governance, problem-solving cooperation governance, and information-sharing governance. The statistical results reveal significant performance differences in how firms apply alternative governance mechanisms to mitigate opportunism, manage adaptation problems, and improve green supply chain collaboration and performance. Overall, this study makes research contributions by confirming the mediation effects of governance mechanisms on green supply chain practices. For green supply chains to be a viable practice, firms should apply governance mechanisms in proper alignment with the nature of the collaborative and environmental conditions. Full article
(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)
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18 pages, 521 KiB  
Article
The Impact of Sustainable Sourcing on Customer Perceptions: Association by Guilt from Scandals in Local vs. Offshore Sourcing Countries
by Claire Veit, Wim Lambrechts, Lieven Quintens and Janjaap Semeijn
Sustainability 2018, 10(7), 2519; https://doi.org/10.3390/su10072519 - 18 Jul 2018
Cited by 19 | Viewed by 6715
Abstract
This study analyzes whether customer perceptions towards sustainability are affected by a company’s country of origin and sourcing strategies. This study builds upon the literature regarding customer interest in sustainable products. It adds the country of origin to the link between customer and [...] Read more.
This study analyzes whether customer perceptions towards sustainability are affected by a company’s country of origin and sourcing strategies. This study builds upon the literature regarding customer interest in sustainable products. It adds the country of origin to the link between customer and company, and analyzes if and how customer perceptions change when they are introduced to a sustainability scandal, hence analyzing possible ‘association by guilt’. It compares their reactions to offshore scandals and to local scandals, therefore taking psychic distance as an important variable into consideration. Customer perceptions of company sustainability was found to have an impact on purchasing behavior. Findings show that perceptions are influenced by psychic distance. Furthermore, companies should take into account the risk of association by guilt when developing their global sourcing strategies. Full article
(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)
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20 pages, 596 KiB  
Article
Government Support and Market Proximity: Exploring Their Relationship with Supply Chain Agility and Financial performance
by Liliana Avelar-Sosa, Jorge L. García-Alcaraz, José M. Mejía-Muñoz, Aidé A. Maldonado-Macías and Giner Alor Hernández
Sustainability 2018, 10(7), 2441; https://doi.org/10.3390/su10072441 - 12 Jul 2018
Cited by 9 | Viewed by 3453
Abstract
The current paper presents a structural equation model with four variables (Government, Infrastructure, Proximity to market, and supply chain Agility) affecting the Financial performance of a company. Six hypotheses or relationships among variables are proposed, supposing that Government and [...] Read more.
The current paper presents a structural equation model with four variables (Government, Infrastructure, Proximity to market, and supply chain Agility) affecting the Financial performance of a company. Six hypotheses or relationships among variables are proposed, supposing that Government and market Proximity are key elements to achieve a greater Agility in supply chains, considering the regional Infrastructure to determine the impact on Financial performance in manufacturing companies. The model is validated with data from a survey applied to 225 persons in 65 manufacturing companies located in Ciudad Juárez, Chihuahua, Mexico. The model is evaluated using partial least squares, and the findings indicate that there is a direct and positive effect from the Government on regional Infrastructure with a rate of 0.436. When the Government supports the availability of land, energy resources, transportation, telecommunications, mobile telephones, and other services, a positive change is achieved in the Infrastructure and supply chain Agility. Furthermore, the Government also has a direct and positive effect on the market Proximity at a rate of 0.171; consequently, the regional Infrastructure also has an effect on it. Similarly, the market Proximity directly and positively influences the supply chain Agility, as well as a company’s Financial performance at a rate of 0.506. Full article
(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)
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23 pages, 2942 KiB  
Article
A Dynamic Failure Rate Forecasting Model for Service Parts Inventory
by Ta-Yu Chen, Woo-Tsong Lin and Chwen Sheu
Sustainability 2018, 10(7), 2408; https://doi.org/10.3390/su10072408 - 10 Jul 2018
Cited by 9 | Viewed by 3586
Abstract
This study investigates one of the reverse logistics issues, after-sale repair service for in-warranty products. After-sale repair service is critical to customer service and customer satisfaction. Nonetheless, the uncertainty in the number of defective products returned makes forecasting and inventory planning of service [...] Read more.
This study investigates one of the reverse logistics issues, after-sale repair service for in-warranty products. After-sale repair service is critical to customer service and customer satisfaction. Nonetheless, the uncertainty in the number of defective products returned makes forecasting and inventory planning of service parts difficult, which leads to a backlog of returned defectives or an increase in inventory costs. Based on Bathtub Curve (BTC) theory and Markov Decision Process (MDP), this study develops a dynamic product failure rate forecasting (PFRF) model to enable third-party repair service providers to effectively predict the demand for service parts and, thus, mitigate risk impacts of over- or under-stocking of service parts. A simulation experiment, based on the data collected from a 3C (computer, communication, and consumer electronics) firm, and a sensitivity analysis are conducted to validate the proposed model. The proposed model outperforms other approaches from previous studies. Considering the number of new products launched every year, the model could yield significant inventory cost savings. Managerial and research implications of our findings are presented, with suggestions for future research. Full article
(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)
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20 pages, 798 KiB  
Article
The Effects of Integrative Leadership on the Enterprise Synergy Innovation Performance in a Supply Chain Cooperative Network
by Dapeng Zhang, Xinbo Sun, Yide Liu, Shunyi Zhou and Hongfeng Zhang
Sustainability 2018, 10(7), 2342; https://doi.org/10.3390/su10072342 - 06 Jul 2018
Cited by 20 | Viewed by 4043
Abstract
Collaborative innovation in a supply chain cooperative network can improve the performance of the enterprise. However, how to achieve the sustainable and stable improvement of the enterprise synergy innovation in a supply chain cooperative network is a common topic of research. Based on [...] Read more.
Collaborative innovation in a supply chain cooperative network can improve the performance of the enterprise. However, how to achieve the sustainable and stable improvement of the enterprise synergy innovation in a supply chain cooperative network is a common topic of research. Based on a survey of 236 enterprises in 53 supply chain cooperative networks, this study found: (1) Integrative leadership has a positive impact on the enterprise synergy innovation performance in a supply chain cooperative network; (2) Knowledge integration and network relationship embeddedness play partial mediating roles between integrative leadership and the enterprise synergy innovation performance, respectively; (3) Knowledge integration and network relationship embeddedness play a sequenced mediating role between integrative leadership and the enterprise synergy innovation performance; (4) The partial mediation role of knowledge integration and network relationship embeddedness are of no significant difference; however, their single mediating roles are greater than that of the sequenced mediating role of knowledge integration and network relationship embeddedness. This paper further emphasizes the key role of the core organization leadership in a cooperative network and discusses its functional route, which is of great importance in developing the theory system of leadership and providing guidance for the cooperation of the supply chain. Full article
(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)
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19 pages, 879 KiB  
Article
The Effects of Customer Perception and Participation in Sustainable Supply Chain Management: A Smartphone Industry Study
by Hyunsoo Kim and Chang Won Lee
Sustainability 2018, 10(7), 2271; https://doi.org/10.3390/su10072271 - 02 Jul 2018
Cited by 18 | Viewed by 9425
Abstract
This empirical study aims to identify the relationship between the role of customer and the customer’s perception and participation in sustainable supply chain management (SSCM). It also aims to examine the relationships among customer’s perception in the SSCM practices, self–brand connection, trust, purchase [...] Read more.
This empirical study aims to identify the relationship between the role of customer and the customer’s perception and participation in sustainable supply chain management (SSCM). It also aims to examine the relationships among customer’s perception in the SSCM practices, self–brand connection, trust, purchase intention, and the willingness to pay a price premium. Previous studies were reviewed, and statistical analysis was conducted with reliability and validity tests, correlation analysis, and a structural equation model. A smartphone industry was selected and a total of 367 data were utilized for this empirical study. The analysis results showed that the customer’s perception of a brand’s SSCM has a positive impact on the customer’s self–brand connection and trust prospectively. Customer’s participation in SSCM also had a positive relation to customer’s self–brand connection and to trust. Self–brand connection and trust played mediating roles between the customer’s perception and purchase intention and between the customer’s perception and the willingness to pay a price premium. The same mediating roles of self–brand connection and trust were found between customers’ participation and purchase intention as well as between customers’ participation and the willingness to pay a price premium. This study identifies the roles of customers as end users in sustainable supply chain management. This study provides managerial insights about customers’ perception of SSCM and their participation in it, resulting in better financial outcomes and improved operational excellence. Full article
(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)
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14 pages, 585 KiB  
Article
Environmental Sustainability as a Source of Product Innovation: The Role of Governance Mechanisms in Manufacturing Firms
by Myung Kyo Kim, Chwen Sheu and Jiho Yoon
Sustainability 2018, 10(7), 2238; https://doi.org/10.3390/su10072238 - 29 Jun 2018
Cited by 12 | Viewed by 3250
Abstract
Over the past two decades, since the emergence of the triple bottom line philosophy, the relationship between environmental sustainability and corporate performance has received a lot of attention, but has generated mixed or often even contradictory results. A few recent studies have inferred [...] Read more.
Over the past two decades, since the emergence of the triple bottom line philosophy, the relationship between environmental sustainability and corporate performance has received a lot of attention, but has generated mixed or often even contradictory results. A few recent studies have inferred that innovations are the missing link that connects the environmental sustainability of a firm to other performance metrics; however, the evidence of such a proposition has been restricted to being conceptual or anecdotal. Relying on a knowledge governance approach, this study presents exploratory empirical evidence indicating that the impacts of a firm’s sustainability initiatives on its innovation performance originate from the governance mechanism it uses for sustainability, not sustainability outcomes per se. We tested this research proposition by using a subsample of Global Manufacturing Research Group’s global survey data. Our results support the positive impacts of two widely-used environmental sustainability governance mechanisms (i.e., internal monitoring and supplier collaboration) on product innovation capability. The findings further provide more useful and effective options for manufacturing firms and managers, to establish environmental sustainability governance mechanisms that can be converted into product innovation capability. Full article
(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)
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20 pages, 3360 KiB  
Article
Corporate Social Responsibility (CSR): A Survey of Topics and Trends Using Twitter Data and Topic Modeling
by Bongsug (Kevin) Chae and Eunhye (Olivia) Park
Sustainability 2018, 10(7), 2231; https://doi.org/10.3390/su10072231 - 28 Jun 2018
Cited by 59 | Viewed by 11264
Abstract
Corporate social responsibility (CSR) is an essential business practice in industry and a popular topic in academic research. Several studies have attempted to understand topics or categories in CSR contexts and some have used qualitative techniques to analyze data from traditional communication channels [...] Read more.
Corporate social responsibility (CSR) is an essential business practice in industry and a popular topic in academic research. Several studies have attempted to understand topics or categories in CSR contexts and some have used qualitative techniques to analyze data from traditional communication channels such as corporate reports, newspapers, and websites. This study adopts computational content analysis for understanding themes or topics from CSR-related conversations in the Twitter-sphere, the largest microblogging social media platform. Specifically, a probabilistic topic modeling-based computational text analysis framework is introduced to answer three questions: (1) What CSR-related topics are being communicated in the Twitter-sphere and what are the prevalent topics or themes in CSR conversation? (topic prevalence); (2) How are those topics interrelated? (topic correlation); (3) How have those topics changed over time? (topic evolution). The topic modeling results are discussed, and the direction for future research is presented. Full article
(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)
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31 pages, 7752 KiB  
Article
A Closed-Loop Supply Chain with Competitive Dual Collection Channel under Asymmetric Information and Reward–Penalty Mechanism
by Wenbin Wang, Shuya Zhou, Meng Zhang, Hao Sun and Lingyun He
Sustainability 2018, 10(7), 2131; https://doi.org/10.3390/su10072131 - 22 Jun 2018
Cited by 24 | Viewed by 3060
Abstract
We investigate a closed-loop supply chain (CLSC) where the retailer and the third-party recycler compete against each other to collect waste electrical and electronic equipment (WEEE) given that collection effort is their private information. Using the principle-agent theory, we develop a CLSC model [...] Read more.
We investigate a closed-loop supply chain (CLSC) where the retailer and the third-party recycler compete against each other to collect waste electrical and electronic equipment (WEEE) given that collection effort is their private information. Using the principle-agent theory, we develop a CLSC model with dual collection channel without the government’s reward–penalty mechanism (RPM). An information screening contract is designed for the manufacturer to attain real information on collection effort levels; meanwhile, the optimal decision-making results of other decision variables are derived. Next, we take RPM into account to further examine the efficacy of the government’s guidance mechanism in improving collection rate and profits of CLSC members. Our results indicate that (i) the collection competition reduces the total collection quantity and the expected profits of all the CLSC members without RPM; (ii) all CLSC members’ expected profits are improved if both two collection agents select a high collection effort level without and with RPM; (iii) RPM increases buyback price, collection price, collection quantity, and franchise fee but decreases wholesale price and retail price; with the reward–penalty intensity increasing, the manufacturer’s expected profit first decreases and then increases, while the expected profits of H-type retailer and H-type third-party recycler continue to increase. We find that RPM may ultimately stimulate the collection agents to collect more WEEEs, while the intense collection competition reduces the profits of CLSC members. Full article
(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)
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18 pages, 1844 KiB  
Article
Low-Carbon Supply Chain Management Considering Free Emission Allowance and Abatement Cost Sharing
by Peng Wu, Yixi Yin, Shiying Li and Yulong Huang
Sustainability 2018, 10(7), 2110; https://doi.org/10.3390/su10072110 - 21 Jun 2018
Cited by 6 | Viewed by 2539
Abstract
As people concern themselves with environmental problems, the right to emit carbon dioxide becomes a new resource with business value that is incorporated in firms’ budgets. This paper studies the optimal emission abatement decision for firms in a supply chain, considering emission costs. [...] Read more.
As people concern themselves with environmental problems, the right to emit carbon dioxide becomes a new resource with business value that is incorporated in firms’ budgets. This paper studies the optimal emission abatement decision for firms in a supply chain, considering emission costs. Four Stackelberg models are established that differ in free emission allowance allocation schemes and emission abatement cost-sharing schemes. On comparing optimal solutions in the models, the results show that regardless of which free emission allowance allocation scheme or emission abatement cost-sharing scheme is adopted, upstream firms tend to set a higher emission reduction rate. If supply chain firms aim for a higher emission reduction rate, they should advocate that upstream and downstream firms establish emission abatement cost-sharing contracts. The upstream firms should undertake larger emission reduction costs, and use free emission allowance allocation schemes based on emission intensity; the optimal emission reduction rate is related to carbon price, and the relationship may not be monotonous, affected by the difficulty of reducing emissions. Full article
(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)
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29 pages, 4751 KiB  
Article
The Influence of Collaboration Initiatives on the Sustainability of the Cashew Supply Chain
by Susana G. Azevedo, Minelle E. Silva, João C. O. Matias and Gustavo P. Dias
Sustainability 2018, 10(6), 2075; https://doi.org/10.3390/su10062075 - 19 Jun 2018
Cited by 27 | Viewed by 5429
Abstract
Collaboration is emerging as a requirement for strengthening relationships among supply chain members and sustainability is rising as a real-world solution for different environmental issues. There are numerous studies that approach both perspectives, but there are still many questions about their relationship, mostly [...] Read more.
Collaboration is emerging as a requirement for strengthening relationships among supply chain members and sustainability is rising as a real-world solution for different environmental issues. There are numerous studies that approach both perspectives, but there are still many questions about their relationship, mostly in the agri-food industry. Hence, this paper aims to address the influence of collaboration initiatives on the sustainability indicators of the cashew supply chain (SC). To reach this objective, a case study was performed among farmers belonging to the Cooperative of Cashews in the Piauí state (COCAJUPI), a local cooperative in Northern Brazil. Attending to the results, it is possible to state that the collaboration initiatives that have higher levels of implementation among research companies are the “trust among supply chain members” and the “sharing of standards information”. Moreover, the size of companies in the cashew SC does not influence the level of implementation of collaboration initiatives. The findings of this study demonstrate that the farms’ area of the companies from the cashew SC does not have a significant influence on their sustainability indicators. Furthermore, a weak relationship exists between the collaboration initiatives and the indicators associated to the three dimensions of sustainability. Full article
(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)
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15 pages, 418 KiB  
Article
The Principal–Agent Leasing Model of “Company + n Farmers” under Two Division Modes
by Jianjun Yu, Xiaohuan Zheng, Yongwu Zhou and Qiongzhi Zhang
Sustainability 2018, 10(6), 2015; https://doi.org/10.3390/su10062015 - 14 Jun 2018
Cited by 2 | Viewed by 2221
Abstract
The principal–agent leasing model consisting of one risk-neutral company and n risk-averse farmers is proposed by taking into consideration the characteristics of contract-farming and the fulfilment issues existing in the production process of agricultural products. We also discuss the optimal incentive coefficients and [...] Read more.
The principal–agent leasing model consisting of one risk-neutral company and n risk-averse farmers is proposed by taking into consideration the characteristics of contract-farming and the fulfilment issues existing in the production process of agricultural products. We also discuss the optimal incentive coefficients and rents for n farmers under the two strategies of decentralization and concentration. The analysis suggests that the two division modes have no influence on the determination of the optimal effort level and the incentive coefficient of each party, and under the n farmers, the incentive coefficient given by the company to a single farmer household is not affected by the conditions of other farmer households. In terms of rent, land rent in the decentralized mode is strictly higher than land rent under the centralized mode. In the two modes of division, the total income of the company and the farmers is equal. Taking into account the randomness of the production process of agricultural products, the company will prefer to choose the centralized mode, and the farmers will tend to choose the decentralized mode in cooperation. Full article
(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)
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26 pages, 2691 KiB  
Article
Toward Supply Chain Sustainability: Governance and Implementation of Joint Sustainability Development
by Yongmei Xu, Jiho Yoon, Myung Kyo Kim and Chwen Sheu
Sustainability 2018, 10(5), 1658; https://doi.org/10.3390/su10051658 - 21 May 2018
Cited by 6 | Viewed by 3224
Abstract
The extant sustainability literature has argued that supply chain (SC) members can gain both financial and operational benefits from a joint sustainability development (JSD) effort. However, no guidance has been provided on how SC members could collaborate on their sustainability development efforts to [...] Read more.
The extant sustainability literature has argued that supply chain (SC) members can gain both financial and operational benefits from a joint sustainability development (JSD) effort. However, no guidance has been provided on how SC members could collaborate on their sustainability development efforts to achieve the intended economic performance. This study addressed this research gap by proposing different contractual governances, based on a game-theoretic approach, for both manufacturer and retailer to better engage in JSD. Specifically, multiple JSD contractual arrangements regarding profit and associated cost sharing between manufacturers and retailers were defined and evaluated. Our analyses show that the manufacturer behaves opportunistically when the impact of a retailer’s effort on consumer demand is low. In other words, the retailer increases its sustainability effort, but not the manufacturer. However, such opportunistic behavior can be removed under a revenue sharing arrangement. That is, the manufacturer becomes cooperative with the retailer, and both retailer and manufacturer increase their JSD efforts. Several numerical experiments were conducted to assess the effectiveness of various revenue sharing arrangements (no sharing, partial profit sharing, and total profit sharing) in devising and implementing a mutually beneficial JSD program. Accordingly, several guidelines for the SC JSD implementation are provided. Full article
(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)
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19 pages, 3666 KiB  
Article
The Economic Effect of Virtual Warehouse-Based Inventory Information Sharing for Sustainable Supplier Management
by Hosang Jung and Sukjae Jeong
Sustainability 2018, 10(5), 1547; https://doi.org/10.3390/su10051547 - 13 May 2018
Cited by 7 | Viewed by 4597
Abstract
With the rapid development of information and communication technologies, inventory information sharing between a manufacturer and its suppliers is becoming easier than ever. In line with this trend, we focus on the virtual warehouse where only inventory information on all of the material [...] Read more.
With the rapid development of information and communication technologies, inventory information sharing between a manufacturer and its suppliers is becoming easier than ever. In line with this trend, we focus on the virtual warehouse where only inventory information on all of the material provided by the suppliers can be stored and shared. Unlike traditional supplier management, the manufacturer constructs and operates this virtual warehouse to check the inventory levels of all the required material at the same time, but each supplier can access only the information about its inventory. This virtual warehouse-based approach can foster a tight relationship between the manufacturer and its suppliers and can handle suppliers as a single company without a large investment in constructing a physical warehouse. The virtual warehouse-based approach seems to be more economically sustainable. To investigate the effect of inventory information sharing via the virtual warehouse, we developed and analyzed a system dynamics-based simulation model. The experiment results show that sharing the inventory information of the suppliers via the virtual warehouse can help manufacturers to achieve better operational performance on several important measures, such as the reduction of finished goods inventory, parts purchasing quantity, degree of backlogs, and total cost. Full article
(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)
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33 pages, 7589 KiB  
Article
Cost-Sharing Contracts for Energy Saving and Emissions Reduction of a Supply Chain under the Conditions of Government Subsidies and a Carbon Tax
by Yuyin Yi and Jinxi Li
Sustainability 2018, 10(3), 895; https://doi.org/10.3390/su10030895 - 20 Mar 2018
Cited by 62 | Viewed by 5381
Abstract
To study the cooperation of upstream and downstream enterprises of a supply chain in energy saving and emissions reduction, we establish a Stackelberg game model. The retailer moves first to decide a cost-sharing contract, then the manufacturer determines the energy-saving level, carbon-emission level, [...] Read more.
To study the cooperation of upstream and downstream enterprises of a supply chain in energy saving and emissions reduction, we establish a Stackelberg game model. The retailer moves first to decide a cost-sharing contract, then the manufacturer determines the energy-saving level, carbon-emission level, and wholesale price successively. In the end, the retailer determines the retail price. As a regulation, the government provides subsidies for energy-saving products, while imposing a carbon tax on the carbon emitted. The results show that (1) both the energy-saving cost-sharing (ECS) and the carbon emissions reduction cost-sharing (CCS) contracts are not the dominant strategy of the two parties by which they can facilitate energy savings and emissions reductions; (2) compared with single cost-sharing contracts, the bivariate cost-sharing (BCS) contract for energy saving and emissions reduction is superior, although it still cannot realise prefect coordination of the supply chain; (3) government subsidy and carbon tax policies can promote the cooperation of both the upstream and downstream enterprises of the supply chain—a subsidy policy can always drive energy saving and emissions reductions, while a carbon tax policy does not always exert positive effects, as it depends on the initial level of pollution and the level of carbon tax; and (4) the subsidy policy reduces the coordination efficiency of the supply chain, while the influences of carbon tax policy upon the coordination efficiency relies on the initial carbon-emission level. Full article
(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)
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