Strategic incentives for complementary producers to innovate for efficiency and support sustainability

Dobson, Paul and Chakraborty, Ratula (2020) Strategic incentives for complementary producers to innovate for efficiency and support sustainability. International Journal of Production Economics, 219. pp. 431-439. ISSN 0925-5273

[img] PDF (Accepted manuscript) - Submitted Version
Restricted to Repository staff only until 3 February 2021.
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (1MB) | Request a copy
[img] PDF (Accepted manuscript) - Submitted Version
Restricted to Repository staff only until 31 December 2099.
Available under License ["licenses_description_unspecified" not defined].

Download (534kB) | Request a copy

Abstract

Process innovation that increases operational efficiency through a step change improvement in resource utilisation and waste reduction can help boost manufacturing profitability but also offer broader social and environmental benefits. Business owners, though, might be reluctant to make investments in process innovation unless they serve a pure profit motive. While not guided by altruistic intentions, the owners might nonetheless see a strategic benefit in providing their managers with remuneration incentives supported by public commitments to increase innovation effort for more efficient, lean and sustainable operations. We model such a possibility amongst producers controlling the supply of essential complementary components that go into the assembly of competitively produced composite finished goods. We demonstrate the ruinous effect of independent strategic delegation to managers of powerful complementary producers. Instead, collaboration amongst the owners of the complementary producers to establish common managerial incentives can increase innovative effort to raise efficiency that benefits the whole industry supply chain, end consumers, and social welfare. Government-backed voluntary agreements with sector-wide commitments may be helpful in encouraging process innovation to support lean supply chains and sustainability.

Item Type: Article
Uncontrolled Keywords: innovation,efficiency,sustainability,incentives,complements,collaboration
Faculty \ School: Faculty of Social Sciences > Norwich Business School
Related URLs:
Depositing User: Pure Connector
Date Deposited: 05 Feb 2018 12:30
Last Modified: 07 Apr 2020 00:36
URI: https://ueaeprints.uea.ac.uk/id/eprint/66222
DOI: 10.1016/j.ijpe.2018.02.001

Actions (login required)

View Item View Item