Achieving triple sustainability in closed-loop supply chain: The optimal combination of online platform sales format and blockchain-enabled recycling

Abstract

This paper examines the optimal combination of blockchain adoption in recycling used products and sales format selection of the online platform to achieve triple sustainability of economy, environment, and society. We focus on a closed-loop supply chain (CLSC) consisting of a manufacturer and an online platform. In the forward chain, the manufacturer sells products through the online platform who adopts reselling or agency selling sales format. In the backward chain, under extended producer responsibility, the manufacturer collects used products and can take advantage of the transparency, trust, and traceability features of blockchain technology, to increase the real recycling rate of used products and gain consumer trust. By constructing stylized differential game model, we clarify the condition of blockchain adoption and discuss the impact of blockchain on platform sales format selection and triple performance of the CLSC. The results show that the improvement in transparency and trust induced by blockchain will increase the brand goodwill and have positive effect on demand. Under blockchain-enabled recycling, the online platform and the manufacturer will reach a stable cooperation on platform reselling when the commission rate is extremely low, and agency selling when the commission rate is relatively high. However, the relationship of cooperation will break down when the commission rate is extremely high or relatively low. Furthermore, it is illustrated that the lower the real recycling rate, the better the effect of blockchain in enabling the triple sustainability of economy, environment, and society.