Electronics closed-loop supply chain value co-creation considering cross-shareholding

Abstract

Closed-loop supply chain value co-creation research has attracted attention from numerous scholars but is rarely discussed in terms of the electronics industry. As such, the impact of cross-shareholding on value co-creation remains unclear. This paper integrates value co-creation and cross-shareholding into the electronics closed-loop supply chain. Stackelberg Game and bi-level programming are used to build the model of electronics closed-loop supply chain value co-creation considering cross-shareholding between the manufacturer and retailer. The impact of cross-shareholding on value co-creation is revealed through comparative static analysis. The case of consumer electronics is adopted to execute numerical analysis and simulation. It is found that: (1) value co-creation includes not only the concern of the manufacturer for consumer value, but also consumer participation in value creation; (2) increasing cross-shareholding ratios will increase values of the closed-loop supply chain and each party (the manufacturer, retailer, remanufacturer, and consumers) and promote consumer participation in value creation when increasing such ratios is conducive to reducing the manufacturer’s unit production cost of using remanufactured parts, as well as the retailer’s unit environmental cost and the concern extent of the manufacturer for consumer value is controlled appropriately at the same time; (3) optimal cross-shareholding ratios should allow for Pareto improvement of values of the closed-loop supply chain and each party.