JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE) ›› 2024, Vol. 59 ›› Issue (9): 42-55.doi: 10.6040/j.issn.1671-9352.0.2023.330

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Recycling channel selection of closed-loop supply chain considering corporate social responsibility investment under diseconomies of scale

GUO Tingting, LI Na   

  1. School of Business Administration, Liaoning Technical University, Huludao 125105, Liaoning, China
  • Published:2024-10-10

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Abstract: Focusing on the closed-loop supply chain with manufacturers CSR investment, the paper constructs a manufacturer-led Stackelberg game model to comparatively analyze the pricing, CSR investment decision making, and the recycling channel selection strategies of manufacturer recycling, retailer recycling, and third-party recycling in the context of diseconomies of scale. Results indicate that:(1)In the three recycling models, the increase of customers sensitivity to CSR investment promotes recycling, raises pricing and CSR investment, while the phenomenon of diseconomies of scale entails the increasing of sale price and shrinking in both recycling rate and CSR investment. Wholesale prices are positively correlated with diseconomies of scale in cases of manufacturer recycling, third-party recycling and retailer recycling with low recycling efficiency.(2)Customers CSR investment sensitivity reduces the negative impact of diseconomies of scale on members profits, while diseconomies of scale inhibits the positive effect of the sensitivity of consumers CSR investment on members profits.(3)From the perspective of improving CSR investment level, recycling rate and overall economic benefits, it is optimal for the manufacturer to recycle when remanufacturing saves more production costs, otherwise, the retailer recycling strategy to be the best under the background of lower diseconomies of scale.(4)Once the diseconomies of scale is in the lower range, the first-mover advantage of the dominant manufacturer disappears.

Key words: closed-loop supply chain, corporate social responsibility, diseconomies of scale, recycling channel

CLC Number: 

  • F273
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