Coordination of Value Chain Members

The innovation-driven coordination of “green” and “growth” in enterprises’ green growth model (EGGM) requires value chain members to collaborate, to facilitate the coordination of business processes in the upstream and downstream of the value chain. Value co-creation and sharing among members in a value network drive firms to implement the green growth model and green transformation. From the perspective of the internal and external environment surrounding the green transformation of the value chain, this chapter explores the coordination mechanism among value chain members that is aimed at ensuring the sharing of value among entities. This coordination mechanism also motivates enterprises to implement the green growth model to coordinate “growth” with economic performance goals and “green” with environmental performance goals. With a better understanding of the relationship between the coordination of value chain members and an enterprise’s green growth, this chapter introduces the concepts and structure of member coordination in the green growth model, analyzes the path of members to achieve coordination, and finally evaluates the characteristics and mechanism of value co-creation in the green growth model. We show that for the internal coordination mechanism, the Shapley value method and cost sharing contract can coordinate the profits and green level of the value chain. In particular, the Shapley value method has a better coordination effect, which can address the externality effect of green transformation investment and encourage value chain members to make cooperative investments. For the external coordination mechanism, government subsidies can effectively motivate value chain enterprises to invest in green levels and increase the market share of green products.