Abstract
Strengthened environmental regulations, upgraded demand for green consumption, and the expansion of direct-to-consumer channels via the internet are driving corporate green transformation. However, rising green production costs are dampening companies' motivation to transition. How to enhance corporate incentives for green production while ensuring profitability has become a key issue in green supply chain management. This paper proposes an equity-based cooperation strategy among supply chain enterprises, constructing a two-tier supply chain model comprising green manufacturers and retailers. By integrating factors such as green products, channel competition, equity strategies, and direct sales, it examines the impact of retailers' partial vertical ownership over manufacturers. The analysis focuses on changes in product greenness, pricing decisions, and supply chain profitability under different scenarios. Findings indicate that heightened consumer green preferences benefit all supply chain participants; channel competition effects are constrained by direct sales costs; increased retailer ownership enhances overall supply chain profitability and mitigates the double marginalization effect. Furthermore, the impact on product greenness varies across channels, collectively highlighting the positive role of equity-based collaboration.
Keywords:
- Keyword: green supply chain
- Keyword: partial vertical ownership
- Keyword: manufacturer intrusion
- Keyword: consumer green preference
- Keyword: channel competition
How to Cite:
Li, J., Jiang, T. & Diabat, A., (2026) “Manufacturer’s Green Production Strategies under Partial Vertical Shareholding”, Journal of Intelligent and Sustainable Systems (JISS) 2(1).