Supply Chain Green Manufacturing and Green Marketing Strategies under Network Externality

Abstract

This paper discusses the impact of network externalities on the green strategies of enterprises at each node of the supply chain. The existing related research mainly addresses the influence of factors such as government regulation, consumer behavior characteristics, and node enterprise behavior on green supply chain decision making. While these studies provide excellent ideas, the impact of network externalities on both green manufacturing and green marketing strategies is often disregarded. This paper uses evolutionary game theory to construct a utility function based on network externalities and consumer green preferences. The Stackelberg game is used to analyze the revenue function of supply chain members under different strategies, showing that under different strategies, network externalities and consumer green preferences have different effects on revenue in the supply chain. To understand the influence of network externalities on green supply chain strategy choices, the evolutionary game model is used. This model allows analyzing the evolutionary stable strategies of manufacturers’ green manufacturing and retailers’ green marketing. The mechanism underlying the influence of network externalities and consumer green preferences on green supply chain decision making is demonstrated. This helps to explain the green strategy decisions of upstream and downstream enterprises in the supply chain.