Decisions and coordination of green e-commerce supply chain considering green manufacturer's fairness concerns

Abstract

With the rapid development of the cyber economy and green consumption demand, more and more consumers choose to purchase green products through e-commerce platforms. Considering the product green degree and the e-commerce platform's service, the paper studies the decisions and coordination of green e-commerce supply chain under green manufactures’ fairness concerns. The centralised model and the decentralised models with and without fairness concern are constructed and analysed with consideration of product green degree and service level. Then, the ‘cost-sharing joint commission’ contract is proposed to realise system coordination. Finally, propositions and conclusions are verified by numerical simulation. The results indicate that unlike traditional offline and dual-channel supply chains, the manufacturer's behaviour in response to fairness concerns can result in the decline both in product green degree and system efficiency but has no impact on service level. Under the centralised model, the product green degree is not the highest but is more affected by consumers’ green preferences. In addition, the product price and the service level will reach the highest under the centralised model. The increase in green technology investments can downsize the feasible interval of the contract, and the consumers’ green preferences can extend the feasible interval.