Competing Reverse Channels’ Performance with Sustainable Recycle Innovation Input

Increasing attention to sustainable development issues and recycling are forcing the recyclers to use different incentives to capture more market share. Recycling innovation input is one of the effective topics in reverse competitive chains. Because of the importance of this issue, firstly, a basic...

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Main Authors: Ran Liu, Bisheng Du, Wenwen Yuan, Guiping Li
Format: Article
Language:English
Published: MDPI AG 2020-08-01
Series:Applied Sciences
Subjects:
Online Access:https://www.mdpi.com/2076-3417/10/16/5429
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author Ran Liu
Bisheng Du
Wenwen Yuan
Guiping Li
author_facet Ran Liu
Bisheng Du
Wenwen Yuan
Guiping Li
author_sort Ran Liu
collection DOAJ
description Increasing attention to sustainable development issues and recycling are forcing the recyclers to use different incentives to capture more market share. Recycling innovation input is one of the effective topics in reverse competitive chains. Because of the importance of this issue, firstly, a basic closed-loop supply chain (CLSC) system is discussed that includes an integrated manufacturer and a third-party collector. Then the impact of the integration with the innovation input into third-party product collectors is considered. Eventually, two models are constructed. The first model is a basic model that includes an integrated manufacturer and one third-party collector with innovation investment. The other model is the hybrid model that includes an integrated manufacturer and two third-party collectors with and without innovation input. Stackelberg game models are used to study the optimal pricing strategies for all three models and players’ attitudes toward different scenarios. Finally, numerical analysis is presented. Our findings are generated on the following three aspects. The collector’s recycling choice, recycling innovation input, and influence on recyclers and manufacturers. It is found that the manufacturer will always choose to recycle and prefers the hybrid recycling market, which depends on the rate of collection and the compensation from production-collecting. Moreover, the results reveal that the highest return rate of recyclers occurred under the hybrid model. However, the recyclers may not be able to invest the sustainable recycle innovation input under the exorbitant innovation barriers.
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spelling doaj.art-07b203ce081f4fa8a761a1469d4ca16a2023-11-20T09:14:39ZengMDPI AGApplied Sciences2076-34172020-08-011016542910.3390/app10165429Competing Reverse Channels’ Performance with Sustainable Recycle Innovation InputRan Liu0Bisheng Du1Wenwen Yuan2Guiping Li3School of Business, Ningbo University, Ningbo 315211, Zhejiang, ChinaSchool of Business, Ningbo University, Ningbo 315211, Zhejiang, ChinaSchool of Business, Ningbo University, Ningbo 315211, Zhejiang, ChinaSchool of Business, Ningbo University, Ningbo 315211, Zhejiang, ChinaIncreasing attention to sustainable development issues and recycling are forcing the recyclers to use different incentives to capture more market share. Recycling innovation input is one of the effective topics in reverse competitive chains. Because of the importance of this issue, firstly, a basic closed-loop supply chain (CLSC) system is discussed that includes an integrated manufacturer and a third-party collector. Then the impact of the integration with the innovation input into third-party product collectors is considered. Eventually, two models are constructed. The first model is a basic model that includes an integrated manufacturer and one third-party collector with innovation investment. The other model is the hybrid model that includes an integrated manufacturer and two third-party collectors with and without innovation input. Stackelberg game models are used to study the optimal pricing strategies for all three models and players’ attitudes toward different scenarios. Finally, numerical analysis is presented. Our findings are generated on the following three aspects. The collector’s recycling choice, recycling innovation input, and influence on recyclers and manufacturers. It is found that the manufacturer will always choose to recycle and prefers the hybrid recycling market, which depends on the rate of collection and the compensation from production-collecting. Moreover, the results reveal that the highest return rate of recyclers occurred under the hybrid model. However, the recyclers may not be able to invest the sustainable recycle innovation input under the exorbitant innovation barriers.https://www.mdpi.com/2076-3417/10/16/5429remanufacturingcompeting reverse channelssustainable innovationStackelberg game
spellingShingle Ran Liu
Bisheng Du
Wenwen Yuan
Guiping Li
Competing Reverse Channels’ Performance with Sustainable Recycle Innovation Input
Applied Sciences
remanufacturing
competing reverse channels
sustainable innovation
Stackelberg game
title Competing Reverse Channels’ Performance with Sustainable Recycle Innovation Input
title_full Competing Reverse Channels’ Performance with Sustainable Recycle Innovation Input
title_fullStr Competing Reverse Channels’ Performance with Sustainable Recycle Innovation Input
title_full_unstemmed Competing Reverse Channels’ Performance with Sustainable Recycle Innovation Input
title_short Competing Reverse Channels’ Performance with Sustainable Recycle Innovation Input
title_sort competing reverse channels performance with sustainable recycle innovation input
topic remanufacturing
competing reverse channels
sustainable innovation
Stackelberg game
url https://www.mdpi.com/2076-3417/10/16/5429
work_keys_str_mv AT ranliu competingreversechannelsperformancewithsustainablerecycleinnovationinput
AT bishengdu competingreversechannelsperformancewithsustainablerecycleinnovationinput
AT wenwenyuan competingreversechannelsperformancewithsustainablerecycleinnovationinput
AT guipingli competingreversechannelsperformancewithsustainablerecycleinnovationinput