ESG strategy in the supply chain considering ownership structures

Abstract Firms with higher ESG ratings typically exhibit greater efficiency in resource utilization, thereby promoting sustainable development. The ownership structure of a supply chain influences corporate behavior, affecting both overall performance and ESG information management practices. This p...

Full description

Saved in:
Bibliographic Details
Main Author: Jiayu Liu
Format: Article
Language:English
Published: Springer 2025-01-01
Series:Discover Sustainability
Subjects:
Online Access:https://doi.org/10.1007/s43621-024-00660-1
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1841545084219162624
author Jiayu Liu
author_facet Jiayu Liu
author_sort Jiayu Liu
collection DOAJ
description Abstract Firms with higher ESG ratings typically exhibit greater efficiency in resource utilization, thereby promoting sustainable development. The ownership structure of a supply chain influences corporate behavior, affecting both overall performance and ESG information management practices. This paper employs a Stackelberg model to explore ESG information management strategies within supply chains characterized by different ownership structures, specifically comparing vertical and horizontal configurations. Our findings indicate that when retailers possess a dominant market position alongside a shareholding manufacturer, the incentive to enhance ESG information levels significantly increases as the shareholding ratio rises. Moreover, the held manufacturer shifts from a focus on price-based competition to quality-based competition. We establish a benchmark model, and our analysis demonstrates that, relative to the benchmark scenario, manufacturers in both ownership structures exhibit a stronger motivation to improve ESG information levels. Accordingly, manufacturers are advised to develop ESG information management strategies that are tailored to their specific ownership structure, shareholding ratio, and the investment cost coefficient associated with ESG information enhancements.
format Article
id doaj-art-d845f5565715488793449bbdbc7344c0
institution Kabale University
issn 2662-9984
language English
publishDate 2025-01-01
publisher Springer
record_format Article
series Discover Sustainability
spelling doaj-art-d845f5565715488793449bbdbc7344c02025-01-12T12:05:14ZengSpringerDiscover Sustainability2662-99842025-01-016112310.1007/s43621-024-00660-1ESG strategy in the supply chain considering ownership structuresJiayu Liu0School of Business Administration, Liaoning Technical UniversityAbstract Firms with higher ESG ratings typically exhibit greater efficiency in resource utilization, thereby promoting sustainable development. The ownership structure of a supply chain influences corporate behavior, affecting both overall performance and ESG information management practices. This paper employs a Stackelberg model to explore ESG information management strategies within supply chains characterized by different ownership structures, specifically comparing vertical and horizontal configurations. Our findings indicate that when retailers possess a dominant market position alongside a shareholding manufacturer, the incentive to enhance ESG information levels significantly increases as the shareholding ratio rises. Moreover, the held manufacturer shifts from a focus on price-based competition to quality-based competition. We establish a benchmark model, and our analysis demonstrates that, relative to the benchmark scenario, manufacturers in both ownership structures exhibit a stronger motivation to improve ESG information levels. Accordingly, manufacturers are advised to develop ESG information management strategies that are tailored to their specific ownership structure, shareholding ratio, and the investment cost coefficient associated with ESG information enhancements.https://doi.org/10.1007/s43621-024-00660-1Supply chain ownershipESGGame theory
spellingShingle Jiayu Liu
ESG strategy in the supply chain considering ownership structures
Discover Sustainability
Supply chain ownership
ESG
Game theory
title ESG strategy in the supply chain considering ownership structures
title_full ESG strategy in the supply chain considering ownership structures
title_fullStr ESG strategy in the supply chain considering ownership structures
title_full_unstemmed ESG strategy in the supply chain considering ownership structures
title_short ESG strategy in the supply chain considering ownership structures
title_sort esg strategy in the supply chain considering ownership structures
topic Supply chain ownership
ESG
Game theory
url https://doi.org/10.1007/s43621-024-00660-1
work_keys_str_mv AT jiayuliu esgstrategyinthesupplychainconsideringownershipstructures