Exploring the spillover effect and supply chain coordination in dual-channel green supply chains with blockchain-based sales platform

Abstract

With the increasing consumer demand for environmentally friendly products, it has become crucial for manufacturers to effectively communicate their sustainability efforts. While the literature extensively examines the benefits of blockchain technology in facilitating informed decision making, little research has explored its cross-channel influence (spillover effect) on decisions in a dual-channel green supply chain. In this study, we investigate a green supply chain with a manufacturer operating a direct channel and making efforts to improve product greenness and a blockchain-based sales platform whose service has a spillover effect on consumer valuation of product greenness in the direct channel. Our findings indicate that, in an uncoordinated supply chain, the spillover effect adversely affects the platform but benefits the manufacturer, while it benefits both parties under coordination. This underscores the importance of supply chain coordination for the sales platform to capitalize on the spillover effect. Moreover, under coordination, variations in key parameters generally align product greenness with supply chain profitability. Finally, the spillover effect typically triggers a shift in demand from the platform to the direct channel, whereas a stronger consumer preference for the platform tends to drive the opposite shift in demand. Interestingly, when product greenness improvement is less costly and the blockchain cost is significant, the spillover effect can stimulate sales on both channels. And, when product greenness improvement is less costly and the blockchain cost is small, a stronger consumer preference for the platform can lead to a shift in demand from the platform to the direct channel.