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...
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Format: | Article |
Language: | English |
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Springer
2025-01-01
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Series: | Discover Sustainability |
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Online Access: | https://doi.org/10.1007/s43621-024-00660-1 |
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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 |