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Quick response strategy (QRS) has been widely adopted in a supply chain where members collect timely market information for better forecasting, and then respond promptly to the market changes by adjusting initial inventory decision. After adopting the QRS, sustainability issues such as greenhouse gas emission and energy waste may be more serious as production lead time is shorter. In this study, due to this dilemma, we develop a two-stage quick response supply chain with cleaner technology, where the manufacturer determines the cleaner technology investment and afterwards the retailer decides the ordering quantity. Based on Bayesian theory, we depict an information updating process for the QRS with cleaner technology. First, we find that the inventory service level significantly affects both manufacturer’s and retailer’s performance under the QRS with cleaner technology. Moreover, our analytical results indicate that the performance of centralised supply chain system is always better than the decentralised one. As a result, we propose two supply chain contracts, minimum ordering quantity (MOQ) and MOQ with buyback (MOQ-BB) to achieve supply chain coordination. Comparing with the MOQ, the MOQ-BB is more flexible to allow better allocation of the ‘additional’ expected profit between the channel members through the buyback price negotiation. [ABSTRACT FROM AUTHOR]

Sustainability is a prevalent topic as the consumers and the governments are much more concerned about the environmental pollution. To reduce the carbon emission, in real world practice, governments have executed different forms of policies to motivate the firms to operate in a sustainable manner. This paper aims to examine the value of bargaining contract when the supply chain member invests in the sustainability projects, and explore the effectiveness of the direct (e.g., cash grant) and indirect (e.g., an increased environmental tax rate) subsidies in reducing the total carbon emission. We first derive the optimal pricing and sustainability effort under the wholesale pricing contract when either the manufacturer or the retailer makes the sustainability investment. We then consider the supply chain coordination under the two-part tariff, revenue sharing, and bargaining contracts. We uncover that only the bargaining contract can coordinate the supply chain and a Pareto improvement is achieved when the bargaining power of the manufacturer is in a specific range. Finally, we reveal that both the direct and indirect subsidies can increase the sustainability effort but they are not always an effective tool to reduce the total carbon emissions. [ABSTRACT FROM AUTHOR]

• Zero-level capabilities have a positive relationship with smart circular product-service systems capabilities. • Environmental dynamism is a significant moderator between zero-level capabilities and smart circular product-service systems capabilities. • Smart circular product-service systems capabilities have a positive relationship with financial performance and environmental performance. A smart product-service system is an integrated digital infrastructure that brings together products and services to provide clients with a full range of options. A smart product-service system is a crucial capability that enhances collaboration among several parties in a supply chain and gives businesses valuable insights into performance. This study investigates (a) the zero-level capabilities (also known as organizational capabilities) that influence dynamic capabilities (i.e., smart circular product-service systems capabilities) building in the Industry 4.0 era while environmental dynamism acts as a moderator, and (b) how the smart circular product-service systems capabilities can support firms' (financial and environmental) performance. Based on the data collected from the manufacturers who have been actively involved in smart circular product-service system based projects, our findings reveal that three zero-level capabilities (i.e., product lifetime database creation capabilities, analytics and business intelligence capabilities and actuating capabilities) are crucial for building dynamic capabilities (i.e., smart circular product-service systems capabilities) in a volatile business environment. Besides, we also highlight how these capabilities can positively affect firms' financial and environmental performance. [ABSTRACT FROM AUTHOR]