Abstract
Today, complex consumer purchase decisions affect company revolution, especially that dealing with environmental (green) innovation. Consumer preferences and pricing could interact in influencing green innovation. This situation is especially vital in industries that are characterized with many safety concerns that urge collaborative development between consumers and companies, such as the food industry. The aim of this paper is to explore the influence of the change in consumer preference characteristics on the green innovation efforts of the food supply chain, introducing the green preference of consumers and the reference price effect. A differential game model of green innovation in the food supply chain is constructed in this paper and solved. It was found that the change in consumer preference characteristics is an important factor to motivate supply chain members to make green innovation efforts. With the enhancement of consumer preference characteristics, the Pareto improvement effect of cost-sharing contracts on the profits of supply chain enterprises is clearer. Further, manufacturers can stimulate suppliers’ green innovation efforts through cost-sharing contracts. When the marginal profit ratio of food supply chain members reaches a certain threshold, the incentive effect of this cost-sharing contract is more significant, and it is more likely to realize the optimal profit of the food supply chain.
Highlights
Green innovation in the food supply chain is an innovative activity for manufacturers or suppliers in the food supply chain to reduce the energy consumption or emission of production processes by applying green product design, green materials and green production technologies [1,2]
In order to better illustrate the application of the model, the validity of the above three green innovation strategies will be tested by the numerical simulation of Mathematica, and the impact of consumers’ green preference and the reference price effect on the profit of the supply chain system will be discussed
Because manufacturers share the cost of the green innovation efforts of suppliers, the optimal level of the green innovation efforts of suppliers will be improved; the greenness of products will be improved and the market demand will be increased
Summary
Green innovation in the food supply chain is an innovative activity for manufacturers or suppliers in the food supply chain to reduce the energy consumption or emission of production processes by applying green product design, green materials and green production technologies [1,2]. Studies range from addressing the motivating factors of green innovation in the food supply chain [4,5,6] to the relative macro perspective of environmental regulation, technological change and market demand. Most studies are focused on relatively micro supply chain systems and include multi-agent decision-making mechanisms. Issues include whether cooperation and coordination among the main actors in the supply chain system can affect the results of green innovation [7] and how this can be achieved using methods such as cost-sharing contracts, wholesale price premium contracts and revenue-sharing contracts, etc. Most of the existing studies first address the supply side of green products and explore the driving factors and coordination methods for the green innovation efforts of enterprises [10,11]
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