Is smart the new green? The impact of consumer environmental awareness and data network effect

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)1029-1053
Journal / PublicationInformation Technology and People
Volume35
Issue number3
Online published4 May 2021
Publication statusPublished - 1 Apr 2022

Abstract

Purpose - New information technologies such as IoT and big data analytics have reshaped the development of smart green products. These products exhibit two important features that are not seen in traditional products: environmental friendliness and data network effect. Based on these unique features, the authors investigate a firm's optimal selling strategy of smart green products from both the profitability and environmental perspectives. 
Design/methodology/approach - The authors establish stylized models to consider the optimality of three selling strategies: (1) traditional strategy – only offering traditional products, (2) green strategy – only offering smart green products, and (3) hybrid strategy – offering both traditional and smart green products. 
Findings - The authors’ analysis shows that in the absence of data network effect, there will always be a conflict between profit maximization and environmental protection. However, a strategy that benefits both the firm and the environment exists when data network effect is present. Interestingly, hybrid and traditional strategies can be win-win strategies, but the green strategy cannot. Also surprisingly, the green strategy may harm the environment more as smart products become greener. 
Originality/value - This study examines the economic and environmental implications of selling smart green products, and contributes to existing literature on sustainable operations and green product design by incorporating the impact of both consumer environmental awareness and data network effect. The authors’ findings shed light on how to coordinate the profitability and environmental impact of selling smart green products in the era of big data and IoT.

Research Area(s)

  • Consumers' environmental awareness, Network effect, Optimal selling strategy, Smart green product

Citation Format(s)

Is smart the new green? The impact of consumer environmental awareness and data network effect. / Yu, Yugang; Zhang, Xin; Zhang, Xiong et al.

In: Information Technology and People, Vol. 35, No. 3, 01.04.2022, p. 1029-1053.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review