Chain Participants Research Articles

Optimal investment and coordination strategies for digital technology adoption in a dual-channel supply chain

Digitization has become a necessity. How upstream and downstream companies in the supply chain coordinate digital transformation is a challenge. To this end, this paper develops a dynamic differential game model that includes a single manufacturer and a single retailer, both of which can decide whether or not to invest in digital applications and thus classify them into Scenarios M and R. The result shows that, compared to the R model, in the M model, the manufacturer sets a higher wholesale price that will suppress the sales volume in the online channel, but its overall profit increase; adopting the M model may be more favorable to both parties, but for the retailer, there is a risk that the manufacturer may charge high wholesale prices. In contrast, for the manufacturer, the retailer has a free-riding behavior. Based on this, this paper proposes an improved model F, where the retailer shares a certain percentage of the investment cost of digital technology to incentivize the manufacturer to invest in digital technology and share information with the retailer. It shows that in this scenario, the supply chain participants realize a win–win situation and make the level of digital technology higher than in the previous two scenarios.

Shared goals and vision in supply chain: a mediation model of prevention-oriented practices and compliance-oriented practices

PurposeManufacturers face increasing demands to address inefficiencies and improve environmental performance across their supply chains. However, there remains a significant gap in empirical research examining how collaboration in the supply chain affects various environmental practices and their consequent impacts on performance. This study aims to address the gap by examining how shared goals and vision drives compliance-oriented and prevention-oriented practices, subsequently affecting environmental performance and operational costs—critical for fostering antifragility and resilience in today’s environment.Design/methodology/approachAn empirical study has been performed based on a sample of survey data from 279 manufacturers from fifteen countries and regions. Applying structural equation modeling analysis to the sample dataset, this study examines the mediating role of two distinct types of environmental practices between shared goals and visions and manufacturers’ environmental performance and operational cost.FindingsThis study delineates distinct pathways through which shared goals and vision affect various types of environmental practices, and consequently lead to different performance outcomes: (1) environmental impact of manufacturing activities depends on the collective efforts of the manufacturers and their supply chain partners; (2) shared goals and vision among supply chain partners facilitates both environmental performance and operational cost through prevention-oriented practice; (3) shared goals and vision in supply chain benefits operational cost performance primarily through prevention-oriented practice, but less likely through compliance-oriented practice.Practical implicationsThis study reveals two distinct pathways through which the shared goals and vision impact various performance outcomes, providing valuable guidance to businesses aiming to balance operational cost and environmental performance — crucial for resilience in today's turbulent environment.Originality/valueThis study not only corroborates existing theories of the Natural Resource-Based View and collaborative networks but also provides a detailed depiction of how collaboration across the supply chain promotes a diverse range of environmental practices and yields varied performance outcomes. It offers vital insights for supply chain participants to effectively navigate environmental challenges, enabling them to cultivate resilience and proactively address environmental issues.

Research on the Impact of Digital Trade on the Reconstruction of Global Value Chains —An Empirical Analysis Based on Cross-national Panel Data

With increasing refinement in production, advancements in information technology, and optimized transport, enterprise value chains have become global. This international division of labor based on Global Value Chains (GVCs) has driven economic growth but also caused issues like income disparity and status inequality. Developed countries aim to maintain dominance in GVCs, while developing countries seek greater participation and advancement within them. For developing nations, breaking the “low-end lock” in GVCs is crucial. This paper empirically examines the complex relationship between digital trade and global value chain reconstruction, and explores the moderating effect of institutional environmental factors on the above relationships. This enriches the research perspective and expands the research at the intersection of digital trade and value chain. Findings suggest that digital trade affects China’s position and participation in global value chains, with institutional quality and economic freedom moderating these effects. This research contributes to understanding the complex dynamics of digital trade and value chain reconstruction, highlighting China’s potential to ascend the global value chain through digital trade development.

The Impact of Structural Transformation on Global Value Chains in the MENA Countries

Abstract Several studies on economic transition propose that structural change in developing countries, that involves reallocating from less productive to more productive sectors, might enhance participation in global value chains (GVCs). However, there is a lack of empirical work on this claim. This study explores the factors affecting global value chain (GVC) participation in the Middle East and North Africa (MENA) region while considering structural transformation from 2000 to 2018. By applying the system GMM empirical research method, we found that structural change significantly contributes to facilitating the position of MENA economies under consideration. Specifically, the service and industry sectors play pivotal roles in these countries. This study also postulates that if we want to strengthen the participation of companies in GVCs, access to the internet, and a high level of education tertiary are necessary Also, environment and policies conducive to investment and direct investment abroad are important. The study posits positive commercial and financial links, and population size as important factors in promoting this position.

A lightweight practical consensus mechanism for supply chain blockchain

We present a consensus mechanism in this paper that is designed specifically for supply chain blockchains, with a core focus on establishing trust among participating stakeholders through a novel reputation-based approach. The prevailing consensus mechanisms, initially crafted for cryptocurrency applications, prove unsuitable for the unique dynamics of supply chain systems. Unlike the broad inclusivity of cryptocurrency networks, our proposed mechanism insists on stakeholder participation rooted in process-specific quality criteria. The delineation of roles for supply chain participants within the consensus process becomes paramount. While reputation serves as a well-established quality parameter in various domains, its nuanced impact on non-cryptocurrency consensus mechanisms remains uncharted territory. Moreover, recognizing the primary role of efficient block verification in blockchain-enabled supply chains, our work introduces a comprehensive reputation model. This model strategically selects a leader node to orchestrate the entire block mining process within the consensus. Additionally, we innovate with a Schnorr Multisignature-based block verification mechanism seamlessly integrated into our proposed consensus model. Rigorous experiments are conducted to evaluate the performance and feasibility of our pioneering consensus mechanism, contributing valuable insights to the evolving landscape of blockchain technology in supply chain applications.

Distortions in China's agricultural virtual water trade: A perspective on value chain decomposition

Due to the exacerbation of climate change, agricultural water security has risen to a prominent position on the global agenda. However, virtual water trade isn't always beneficial for enhancing water resource sustainability; instead, it often leads to serious trade distortion problems due to unreasonable industrial and trade structures. This study employs pathway decomposition method to highlight the path characteristics of such distortions, revealing how virtual water trade distortions occur, why there are regional differences, and what insights can be gained for policy formulation. The study focuses on the agricultural sectors of seven key provinces in China. Findings indicate that virtual water in these provinces' agricultural sectors is predominantly exported through inter-regional and inter-sectoral intermediate goods trade. Furthermore, in regions where virtual water trade distortion is more severe, this characteristic becomes more apparent, leading to significant exports of virtual water. However, the trade chains for importing virtual water are usually short and direct, resulting in a relatively low volume of virtual water imports. These characteristics are closely related to the value chain participation mode. The policy implication is: while "value chain upgrading" has become a trendy term, merely improving trade conditions without enhancing the processing of agricultural products for export, or simply increasing imports of low-end intermediate inputs without upgrading the agricultural input structure for imports, offers no assistance in alleviating virtual water trade distortions. Based on these findings, we propose several differentiated strategies to mitigate virtual water trade distortions.

Does fuel price volatility induce price instability in the agricultural commodity supply chain? Empirical evidence from Ghana

Food price volatility has become a hot topic after the global food crisis of 2007/2008 and 2010/2011 due to the livelihood threat it poses, particularly to poor households. The purpose of this paper is threefold: to determine the possible volatility spillover effect from fuel to food prices, assess the perception of actors along the food supply chain on the effects of price volatility, and investigate the indigenous management methods used by the identified actors. We discovered evidence of volatility transmission from fuel to food markets in southern Ghana. However, in northern Ghana, where agricultural commodities are primarily brought to market on motorcycles and tricycles, the spillover effect of fuel is negligible. The supply chain participants believe that price volatility is having a detrimental impact on their decision-making or planning, supplies/production, and finances. Wholesalers and retailers handle price volatility by diversifying their sources, storing products for better pricing, and implementing volume controls. Farmers' primary price volatility control strategies include crop diversification, market information collection, staggered sales, and produce storage for better prices. Policy ideas have been developed to assist reduce price uncertainty in the basic food supply chain.

Logistics service decision for e-commerce supply chain with fairness concern under uncertain environment

In this paper, we construct a two-echelon supply chain composed of an e-commerce platform and a manufacturer. We investigate the impact of manufacturer’s fairness concern (MFC) on e-commerce supply chain logistics service decisions under an uncertain environment. Given the uncertainty of the market environment, we depict unit cost of product and logistics service elasticity as uncertain variables. We construct four game-theoretical models, i.e. the manufacturer or the platform undertakes logistics service without and with considering the MFC, and compare the equilibrium solutions through numerical analysis. The results demonstrate that providing logistics services through an e-commerce platform increases the profits of all supply chain participants, regardless of whether the MFC is considered or not. Furthermore, we discover that the manufacturer will not always benefit from the MFC, the MFC can decrease the expected profits of supply chain participants. Interestingly, an increase in the level of environmental uncertainty does not necessarily imply a threat to the interests of supply chain participants. Under an uncertain environment, every supply chain participant needs to consider its fairness concern behavior and coordinate with logistics service strategies.

Technological Innovation, Productivity, and Global Value Chains Participation of Philippine Manufacturers

Using a unique dataset on Philippine manufacturers from 2007 to 2011, this study adopts the three‐stage Crépon‐Duguet‐Mairesse model to trace which trade linkages in global value chains (GVCs) contribute to Philippine firms' technological innovation and labor productivity. The results indicate that Philippine GVC suppliers primarily implement incremental process innovations using imported technology and externally sourced knowledge, while internally developed technology is less common. Accordingly, imported rather than indigenous knowledge contributes more to the labor productivity premium of GVC suppliers. Nevertheless, pure exporting is generally unrelated to process and product innovations. These results suggest that the innovation and productivity effects of GVC participation in the Philippines are mainly driven by imports and foreign‐sourced technology. Since suppliers' innovative behavior tend to complement the technological requirements of their production activities, we argue that the results are consistent with Philippine manufacturers' limited participation in technology‐ and innovation‐intensive GVC functions. The implication on long‐run upgrading is discussed.

Russia's participation in global value chains in the Asia region: Challenges and prospects

Russia's participation in global value chains in the Asia region: Challenges and prospects

The Financial Strategy for the Development Of Industry 4.0 in the Countries with Developing Economy

Industry 4.0 incorporates cutting-edge digital technology into the supply chain and manufacturing operations to build a more intelligent, networked system. 4.0, which uses digital technology to automate and simplify processes, is the financial strategy for creating and digitizing the supply chain. Issues confronting the supply chain sector may have an answer thanks to financial and economic development strategy technology. It is a safe, decentralized digital ledger that can transparently and impenetrably record data and transactions. With the use of this technology, a common supply chain information database that is available to everyone engaged in the financial plan for the nation's development can be established. A few advantages of implementing financial and economic development strategy technology in the supply chain sector for financial and economic development strategy are increased traceability and transparency, decreased fraud and counterfeiting risk, faster and more secure payment processing, and enhanced cooperation amongst supply chain participants. Studies on applying financial and economic development strategy technology in supply chains are still scarce. Work presents a thorough step-by-step model based on institutional and resource-based innovation diffusion theory to fill this research vacuum. The model is validated with data from Pakistan and the United Arab Emirates, revealing significant differences between the variables driving both countries' innovation and adoption stages of financial and economic development strategies. The study provides insightful information on how financial and economic development strategies are employed in developing countries' financial strategies.

Impact of green manufacturing, green purchasing, and eco-design on organizational performance in the FMCG sector of Pakistan

Global warming, air pollution, and natural resource depletion have severely changed how businesses manufacture and provide goods and services. Greening supply chains have attracted the attention of practitioners in several nations in this context. Carbon taxes, for example, have been made a legal necessity in various countries. However, green supply chain management methods and their influence on company performance are still in their early stages of adoption. Firms frequently require the engagement of their supply chain participants to meet rising stakeholder demands for ecologically friendly goods and processes. GSCM is a collection of managerial approaches that include environmental concerns in the supply chain. Green supply chain management may help a company gain a competitive edge while improving its environmental sustainability. The overarching goal of this thesis is to add to the conversation on green supply chain management methods by examining their drivers and performance implications for the FMCG sector of Pakistan. FMCG company's supply chain must be prioritized to be efficient and effective in GSCM because these products are essential for everyone. This study aims to raise awareness about the importance of GSCM practices for the advantage of society and long-term economic and environmental development. The respondents of the 136 helped in the collection of data. They use SPSS and techniques like ANOVA, regression analysis, and correlation. All of the three hypotheses were accepted.

Modeling the Decision and Coordination Mechanism of Power Battery Closed-Loop Supply Chain Using Markov Decision Processes

With the rapid growth of the new energy vehicle market, efficient management of the closed-loop supply chain of power batteries has become an important issue. Effective closed-loop supply chain management is very critical, which is related to the efficient utilization of resources, environmental responsibility, and the realization of economic benefits. In this paper, the Markov Decision Process (MDP) is used to model the decision-making and coordination mechanism of the closed-loop supply chain of power batteries in order to cope with the challenges in the management process, such as cost, quality, and technological progress. By constructing the MDP model for different supply chain participants, this paper investigates the optimization strategy of the supply chain and applies two solution methods: dynamic programming and reinforcement learning. The case study results show that the model can effectively identify optimized supply chain decisions, improve the overall efficiency of the supply chain, and coordinate the interests among parties. The contribution of this study is to provide a new modeling framework for power battery recycling and to demonstrate the practicality and effectiveness of the method with empirical data. This study demonstrates that the Markov decision-making process can be a powerful tool for closed-loop supply chain management, promotes a deeper understanding of the complex decision-making environment of the supply chain, and provides a new solution path for decision-making and coordination in the supply chain.

Smallholder participation in zero-deforestation supply chain initiatives in the Indonesian palm oil sector: Challenges, opportunities, and limitations

As actors in tropical agricultural commodity supply chains implement commitments to end deforestation, they risk exacerbating social inequities by excluding smallholder farmers, who are important producers of many tropical commodity crops. Here, we explore the potential for independent oil palm smallholders in Indonesia to participate in zero-deforestation supply chains. We find that these smallholders are underrepresented in the share of zero-deforestation compliant oil palm production. We then synthesize perspectives from key actors in the oil palm industry including smallholders and their representatives, palm oil producing and consulting companies, nongovernmental organizations, and academic researchers. Based on these perspectives, we find that challenges to smallholder supply chain participation include limitations in knowledge (e.g., smallholders may not know the location of protected forests), institutional issues (e.g., absence of trust between oil palm growing companies and smallholder farmers), and financial constraints (e.g., the opportunity cost of not clearing forest). To address these shortcomings, we encourage oil palm growing and milling companies to take the lead on incentivizing, supporting, and facilitating smallholder participation in zero-deforestation initiatives. Specifically, these companies could build and use their technical and political resources to identify and map all forests in their entire supply shed and ensure small producers have land rights that enable participation in zero-deforestation supply chains. These policy levers would need to be combined with economic incentives such as access to improved inputs or price premia for their products. However, we caution that smallholder integration into existing zero-deforestation supply chains alone is unlikely to result in significant additional forest conservation at scale in Indonesia due to selection bias, leakage, and existing land tenure norms. Community-led and jurisdictional or landscape-scale supply chain initiatives that acknowledge multi-commodity production are more likely to provide equitable and just avenues for Indonesian smallholder farmers to steward forest resources.

Participation in global value chains and M&A flows

Abstract This study investigates whether companies operating in industrial sectors characterized by a higher participation in global value chains (GVC) are more likely to be involved in cross-border mergers and acquisitions (M&A). We focus on firms acquired in the EU27 during the period 2008–2020 implementing a gravity model. Results show that cross-border investments are indeed associated with sectoral GVC participation, in particular the dependence on intermediates supplied by other countries (i.e., backward GVC participation) of the target country-sector, which is positively correlated with M&A flows. This evidence is confirmed when the acquired firm operates in high-tech sectors, and when the investor is based in OECD countries. In addition, we find that companies from non-OECD countries supplying inputs to other countries (i.e., higher forward GVC participation) are more likely to pursue a cross-border acquisition.

Sustainable Food Value Chains: Approaches to Transaction Costs in Agro-Alimentary Systems of Developing Countries—A Chile Case Study

This study delves into the dynamics of price linkages and transaction costs in agricultural markets, emphasizing the sustainability of food supply chains. By exploring vertical and horizontal price linkages in agro-farming value chains of a developing country, it addresses the efficiency of market information transmission and the capacity for arbitrage among chain participants. The methodological core of the research involves analyzing price linkages in Chilean horticultural wholesale markets, focusing on key vegetables such as, onions, lettuce, maize, and tomatoes. This analysis is underpinned by a novel approach that models and estimates time-dependent, conditional threshold bands, extending the traditional cointegration models. This method allows a more nuanced understanding of how agricultural market linkages evolve over time, enhancing our comprehension of price transmission behavior and market integration. The results reveal significant non-linear relationships between fuel prices and vegetable prices, particularly in central Chilean regions. This finding challenges the traditional linear perspective, suggesting that factors such as storage capacity and arbitrage behavior can influence price signal transmission. Such insights are crucial for stakeholders in the agribusiness value chain, offering a deeper understanding of market dynamics and aiding in the development of more sustainable and efficient market strategies. This research contributes significantly to the field of agricultural economics by providing a more robust framework for analyzing market behaviors and transaction costs in the context of sustainability and value chains. Its findings have profound implications for both theory and practice, informing policy-making and strategic decision-making in the agribusiness sector.

Unraveling wage inequality: tangible and intangible assets, globalization and labor market regulations

In this paper, we study the asymmetric effects of different types of capital-embodied technological change, as proxied by tangible and intangible assets, on relative wages (high- to medium-skilled, high- to low-skilled and medium- to low-skilled workers), relying upon the technology-skill complementarity and polarization of the labor force frameworks. We also consider two additional major channels that contribute to shaping wage differentials: globalization (in terms of trade openness and global value chains participation) and labor market institutions. The empirical analysis is carried out using a panel dataset comprising 17 mostly advanced European economies and 5 industries, with annual observations spanning the period 2008–2017. Our findings suggest that software and databases—as a proxy for intangible technologies—exert downward pressure on low-skilled wages, while robotics is associated with a polarization of the wage distribution at the expense of middle-skilled labor. Additionally, less-skilled workers’ relative wages are negatively affected by trade openness and global value chain participation, but positively influenced by sector-specific labor market regulations.

Back to a resilient future: Digital technologies for a sustainable supply chain

Economic, political, and societal pressure forces companies to act more sustainably. New legislation and regulation such as the Supply Chain Act, mandates companies to take responsibility for their actions as well as those of their supply chain collaborators. Meeting these requirements demands transparency. Digital technologies along the supply chain have the potential to collect diverse types of data and raise awareness for sustainability purposes. For example, data obtained from multiple supply chain participants can be used to estimate CO2 emissions or optimize resource utilization. Following guidelines for systematically reviewing a body of literature, this paper therefore investigates the distribution of digital technologies in supply chains for sustainability. Based on a collected corpus of 70 articles, we identify seven key digital technologies and indicate how they can be employed to contribute to economic, environmental, and social sustainability. The results show that (1) blockchain is the most used technology for sustainability within the supply chain and (2) the majority of articles on digital technologies in our corpus address the social dimension of sustainability. Our findings advance the understanding of how digitalization can transform supply chains into more sustainable entities and help practitioners decide which technology fits a certain sustainability dimension.

“B2B” MODULE OF THE REGIONAL DIGITAL PLATFORM AS A TOOL FOR COOPERATION OF SUPPLY CHAIN STAKEHOLDERS AND DEVELOPMENT OF IMPORT SUBSTITUTION POLICY

The main stages in the development of the “B2B” module of a regional digital platform for collaboration of supply chain participants and other stakeholders have been identified in order to manage regional supply chains and develop import substitution policies. Algorithms have been developed for making management decisions on the feasibility of supporting import substitution projects within the “B2B” module of the regional digital platform, which will accelerate the transition of business entities to the production of competitive innovative products in the domestic market, which will help ensure economic security and increase the competitiveness of the territory. The study was carried out with financial support from the Belarusian Republican Foundation for Basic Research (BRFFR Nauka M G23M-029 grant).

Supply chain finance-based payment scheme strategies in a pull supply chain

A pull supply chain can reduce unnecessary inventory and lower carbon emissions. However, suppliers' capital constraints in the pull supply chain hinder their production and may disrupt the entire supply chain, limiting participants' efforts in sustainability actions. To alleviate this situation and motivate upstream and downstream enterprises in the supply chain to reduce carbon emissions for sustainable development, many core companies or financial institutions have employed payment-term-based supply chain finance (SCF) mechanisms such as carbon trade financing, including advanced payment, delayed payment, and reverse factoring. In this study, we acquire the optimal decisions for the supplier and manufacturer under each model and investigate the impacts of different payment schemes on the performance of individuals and the entire supply chain. In addition to reducing carbon emissions to promote sustainability goals, these payment mechanisms are also profitable. By comparing SCF-based payment schemes with the classic bank at-once payment, we show that the optimal payment scheme depends on financing priority. Furthermore, SCF-based payment schemes enhance profit efficiency in response to increasing demand fluctuations. The findings of our study provide insights for supply chain participants to choose the best payment-term-based SCF programmes to optimise operations, enhance their profitability, and achieve sustainable development.