Creating Shared Value: An Operations and Supply Chain Management Perspective
Focusing solely on short-term profits has caused social, environmental, and economic problems. Creating shared value integrates profitability with social and environmental objectives, offering a holistic solution. This dissertation examines two areas where this integration is crucial. The first topic explores servicizing business models for a transition to a more circular economy, emphasizing environmental benefits and firm profitability. Initially, we focus on pricing policies, comparing pricing schemes across consumer segments to identify win-win-win strategies that meet all people, planet, and profit objectives. Our research reveals that pay-per-use schemes outperform pay-per-period schemes for cost-inefficient or small-scale providers. A win-win (profit and planet) strategy can be achieved by offering a pay-per-use policy to high usage-valuation consumers, but a win-win-win strategy is unattainable. We then investigate consumer choices in servicizing models by conducting a conjoint experiment on payment scheme, price, minimum contract duration, and entry label attributes. The payment scheme emerges as the most influential attribute, with purchasing and pay-per-use schemes being popular options. The second topic focuses on drug shortages. Specifically, we examine the impact of tendering on shortages. Our findings demonstrate that tendering reduces prices but increases shortages, particularly at the beginning of contracts. However, shortages are less severe when alternative suppliers are available, and the market is less concentrated. To address this issue, we propose allowing multiple winners, regionalizing tenders, increasing the time between tender and contract initiation, and incorporating a reliability measure as a winning criterion to mitigate shortages.