Supply Chain Upstream Innovation Considering Social Preference

Innovation is one of the key drivers in the creation of high-technology products,and supply chain innovation and contract coordination is an important issue in supply chain management,which is always one of the significant research field of management.In previous studies,most supply chain innovation models are based on the assumption of self-interest and rational agent.However,in the actual supply chain innovation,the supply chain members will pay attention to each other's payoff,which result in social preferences.As a theoretical exploration,this paper extends social preferences to supply chain upstream innovation,and studies the social preferences on supply chain innovation.This paper mainly includes the following parts:According to the decision-making relationship between upstream and downstream enterprises in the supply chain and different types of innovation cooperation contracts,this paper builds a supply chain upstream innovation model with social preferences,and then solves the equilibrium innovation level,optimal pricing and actual profit.Through the comparative analysis of various decision variables,the impact of social preferences on supply chain decisions and the selection of the best incentive contract is analyzed under different incentive contracts.The research finds that:(1)Social preference is beneficial to improving the level of innovation and the total profit of the supply chain,but only the supplier's social preference of can simultaneously increase the profit of the members of the supply chain and achieve a win-win situation;(2)When the manufacturer has social preferences,collaborative innovation is always better than non-collaborative innovation,but when the supplier has social preferences,non-collaborative innovation is better than collaborative innovation under certain conditions;(3)Compared to fairness concern,altruism is more beneficial to supply chain innovation;(4)When the manufacturer's social preferences is strong enough,the double marginalization of wholesale price contract will be mitigated,but it can't achieve supply chain coordination.This paper expands the research of social preference behavior in the field of operation management,and the relevant conclusions can provide practical suggestions for the upstream innovation decision of the supply chain.