Selection Strategy and Coordination of Green Product R&D in Sustainable Competitive Supply Chain

Abstract

Green product R&D is a necessary measure for enterprises to achieve sustainable development. This paper studies the optimal selection strategy of green product R&D and the impact of price competition and green R&D cost on prices, green levels, and enterprise profits in the sustainable competitive supply chain. We establish manufacturer-led game models and compare the equilibrium results of green R&D strategies. The study found that three types of green product R&D strategies exist in competitive supply chains: neither conduct green product R&D (NN), only one supply chain conducts green product R&D (YN), and both conduct green product R&D (YY). Price competition intensity and green R&D cost have a negative impact on prices, green levels, and enterprise profits. Wholesale prices, retail prices, green levels, and enterprise profits are highest in YY strategy, but they are lowest in NN strategy. When one supply chain does not conduct green product R&D, the other supply chain will choose green product R&D only if the green R&D cost meets certain condition. When one supply chain conducts green product R&D, the optimal choice for the other supply chain is always to conduct green product R&D. For the optimal selection strategies, applying two-part pricing contracts achieve supply chain coordination. Our research results provide a reference for the strategic choice of green product R&D in competitive supply chains.