The Impact of Green Technology Investment Levels on Competitive Supply Chain Integration Decisions

Abstract

The current study focuses on vertical supply chain integration, with a special emphasis on the competitive environment of green investment markets and green investments. The current study investigates the relationship between the final product’s green service level and integration and non-integration methods within two separate supply chain models, namely the Nash competition and Stackelberg game models. To attain its goals, the study utilises an inverse derivation technique and comparative analysis. The current study investigates the best integration approach depending on the level of environmental investment in the supply chain’s final product. The findings revealed that the inter-chain rivalry in green investment and the sensitivity coefficient associated with green investment impacted the integration decisions of competing chains in the Nash competition. Furthermore, when the coefficient of the sensitivity to green investment was greater than 0.375, the choice to integrate logistics service supply chains in a horizontal Nash competition was independent of the amount of service competition intensity. In such cases, taking a different strategy than the rival chain might potentially increase the grade of eco-friendly services provided by one’s own chain.