External financing, channel power structure and product green R&D decisions in supply chains
Purpose – This study aims to focus on the optimal green R&D of a capital-constrained supply chain under different channel power structures as well as the impact of capital constraint, financing cost, channel power structure and cost-reducing efficiency on green R&D and supply chain profitabi...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2023-11-01
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| Series: | Modern Supply Chain Research and Applications |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/MSCRA-04-2023-0013/full/pdf |
| _version_ | 1797449165595213824 |
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| author | Jianchang Fan Zhun Li Fei Ye Yuhui Li Nana Wan |
| author_facet | Jianchang Fan Zhun Li Fei Ye Yuhui Li Nana Wan |
| author_sort | Jianchang Fan |
| collection | DOAJ |
| description | Purpose – This study aims to focus on the optimal green R&D of a capital-constrained supply chain under different channel power structures as well as the impact of capital constraint, financing cost, channel power structure and cost-reducing efficiency on green R&D and supply chain profitability. Design/methodology/approach – A two-echelon supply chain is considered. The upstream firm engages in green R&D but has capital constraints that can be overcome by external financing. Green R&D is beneficial to reduce production costs and increase consumer demand. Based on whether or not the upstream firm is capital constrained and dominates the supply chain, four models are developed. Findings – Capital constraints significantly lower green R&D and supply chain profitability. Transferring leadership from the upstream to the downstream firms leads to higher green R&D levels and downstream firm profitability, whereas the upstream firm's profitability is increased (decreased) if green R&D investment efficiency is high (low) enough. Greater financing costs reduce green R&D and downstream firm profitability; however, the upstream firm's profitability under the model in which it functions as the follower increases if the initial capital is sufficient. More importantly, empirical analysis based on practice data is used to verify the theoretical results reported above. Practical implications – This study reveals how upstream firms in supply chains decide green R&D decisions in situations with capital constraints, providing managers and governments with an understanding of the impact of capital constraint, channel power structure, financing cost and cost-reducing efficiency on supply chain green R&D and profitability. Originality/value – The major contributions are the exploration of supply chain green R&D by taking into consideration channel power structures and cost-reducing efficiency and the validation of theoretical results using practice data. |
| first_indexed | 2024-03-09T14:20:54Z |
| format | Article |
| id | doaj.art-b3e2eef8b4714035b514d6a42add81cf |
| institution | Directory Open Access Journal |
| issn | 2631-3871 |
| language | English |
| last_indexed | 2024-03-09T14:20:54Z |
| publishDate | 2023-11-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Modern Supply Chain Research and Applications |
| spelling | doaj.art-b3e2eef8b4714035b514d6a42add81cf2023-11-28T11:42:49ZengEmerald PublishingModern Supply Chain Research and Applications2631-38712023-11-015317620810.1108/MSCRA-04-2023-0013External financing, channel power structure and product green R&D decisions in supply chainsJianchang Fan0Zhun Li1Fei Ye2Yuhui Li3Nana Wan4Nanjing University of Finance and Economics – Xianlin Campus, Nanjing, ChinaZhejiang Wanli University, Ningbo, ChinaChengdu University of Information Technology, Chengdu, ChinaGuilin University of Electronic Technology, Guilin, ChinaSouthwest University of Science and Technology, Mianyang, ChinaPurpose – This study aims to focus on the optimal green R&D of a capital-constrained supply chain under different channel power structures as well as the impact of capital constraint, financing cost, channel power structure and cost-reducing efficiency on green R&D and supply chain profitability. Design/methodology/approach – A two-echelon supply chain is considered. The upstream firm engages in green R&D but has capital constraints that can be overcome by external financing. Green R&D is beneficial to reduce production costs and increase consumer demand. Based on whether or not the upstream firm is capital constrained and dominates the supply chain, four models are developed. Findings – Capital constraints significantly lower green R&D and supply chain profitability. Transferring leadership from the upstream to the downstream firms leads to higher green R&D levels and downstream firm profitability, whereas the upstream firm's profitability is increased (decreased) if green R&D investment efficiency is high (low) enough. Greater financing costs reduce green R&D and downstream firm profitability; however, the upstream firm's profitability under the model in which it functions as the follower increases if the initial capital is sufficient. More importantly, empirical analysis based on practice data is used to verify the theoretical results reported above. Practical implications – This study reveals how upstream firms in supply chains decide green R&D decisions in situations with capital constraints, providing managers and governments with an understanding of the impact of capital constraint, channel power structure, financing cost and cost-reducing efficiency on supply chain green R&D and profitability. Originality/value – The major contributions are the exploration of supply chain green R&D by taking into consideration channel power structures and cost-reducing efficiency and the validation of theoretical results using practice data.https://www.emerald.com/insight/content/doi/10.1108/MSCRA-04-2023-0013/full/pdfCapital constraintExternal financingChannel power structureGreen supply chain |
| spellingShingle | Jianchang Fan Zhun Li Fei Ye Yuhui Li Nana Wan External financing, channel power structure and product green R&D decisions in supply chains Modern Supply Chain Research and Applications Capital constraint External financing Channel power structure Green supply chain |
| title | External financing, channel power structure and product green R&D decisions in supply chains |
| title_full | External financing, channel power structure and product green R&D decisions in supply chains |
| title_fullStr | External financing, channel power structure and product green R&D decisions in supply chains |
| title_full_unstemmed | External financing, channel power structure and product green R&D decisions in supply chains |
| title_short | External financing, channel power structure and product green R&D decisions in supply chains |
| title_sort | external financing channel power structure and product green r d decisions in supply chains |
| topic | Capital constraint External financing Channel power structure Green supply chain |
| url | https://www.emerald.com/insight/content/doi/10.1108/MSCRA-04-2023-0013/full/pdf |
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