Abstract
Sustainable green technology innovation is essential in all the stages of the supply chain development. The members of the supply chain in each stage need to invest in sustainable green technology innovation research and development. However, whether the sustainable green technology innovation investments and profits for all the members are fairness concerned is a critical factor to motivate the supply chain members. Motivated by a real business investigation, in this study, a supply chain model with one supplier and one manufacturer is analyzed. We consider fairness concerns for the supplier and the manufacturer with sustainable green technology innovation development. We derive the optimal results in both with and without fairness concern. The results indicate that fairness concerns can promote and coordinate the supply chain members without advantage inequity averseness, to invest more on their sustainable green technology innovation development.
Highlights
In the sustainable green technology innovation development, companies have to use the up-to-date methodologies from a technological, economic and social environmental viewpoint to the company’s R&D [1]
We aim to find out the conditions of the optimal decisions with sustainable green technology innovation efforts provided by the supplier and the manufacturer, as well as their pricing policies for selling sustainable innovation products to their downstream customers respectively
In order to obtain more closed-form analytical insights, we assume that the cost of investment for sustainable green technology innovation effort provided by the supplier is a quadratic function, i.e., C = Hs · i2s, where Hs is a scaling parameter and refers to the investment sensitivity of sustainable green technology innovation efforts provided by the supplier
Summary
In the sustainable green technology innovation development, companies have to use the up-to-date methodologies from a technological, economic and social environmental viewpoint to the company’s R&D [1]. Res. Public Health 2017, 14, 1357 and fairness, with respect to the environment and the sustainable green technology innovation development, represent, for all the members of a supply chain great challenges, such as the imbalanced supply and demand for resources, environmental disruption, workers assignments. We aim to find out the conditions of the optimal decisions with sustainable green technology innovation efforts provided by the supplier and the manufacturer, as well as their pricing policies for selling sustainable innovation products to their downstream customers respectively. Third, we compare the optimal decisions of the supplier and the manufacturer with respect to their corresponding fairness concerns in the supply chain All these findings provide important implications for the research community on the operations management with sustainable green technology innovation and research development under different channel power. All the proofs are regulated to the Appendixes A and B
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