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Sustainability 2017, 9(6), 961; doi:10.3390/su9060961

Economic and Environmental Performance of Fashion Supply Chain: The Joint Effect of Power Structure and Sustainable Investment

1
School of Economics & Management, Nanjing University of Science & Technology, Nanjing 210094, China
2
School of Business Administration/MBA School, Zhongnan University of Economics and Law, Wuhan 430073, China
*
Author to whom correspondence should be addressed.
Academic Editor: Marc A. Rosen
Received: 7 May 2017 / Revised: 29 May 2017 / Accepted: 2 June 2017 / Published: 6 June 2017
(This article belongs to the Special Issue Sustainability Issues in the Textile and Apparel Supply Chains)
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Abstract

Fashion supply chain members now search for trade-offs between sustainable investment and the related incentives, such as savings on environmental taxes and gains in incremental demands. To evaluate the economic and environmental performance of sustainable investment from a power perspective, we develop an analytical model to study a two-echelon sustainable supply chain consisting of one retailer and one manufacturer with three different power structures. We derive the optimal solutions for various cases associated with different supply chain power structures and sustainable investors. Though it is beneficial for both the manufacturer and retailer to make sustainable investment, they often utilize high power to gain economic benefit with less sustainable investment. Interestingly, the follower with less supply chain power has more incentive to make a sustainable effort to achieve a higher profit. The optimal amount of sustainable investment in the apparel manufacturer investment case is greater than that in the retailer investment case in most scenarios. View Full-Text
Keywords: supply chain performance; sustainable investment; power structure; environmental tax supply chain performance; sustainable investment; power structure; environmental tax
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Shi, X.; Qian, Y.; Dong, C. Economic and Environmental Performance of Fashion Supply Chain: The Joint Effect of Power Structure and Sustainable Investment. Sustainability 2017, 9, 961.

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