Article ID: | iaor20135252 |
Volume: | 15 |
Issue: | 4 |
Start Page Number: | 649 |
End Page Number: | 669 |
Publication Date: | Sep 2013 |
Journal: | Manufacturing & Service Operations Management |
Authors: | Erhun Feryal, Zheng Yanchong, Kraft Tim |
Keywords: | geography & environment |
We study a nongovernmental organization's (NGO's) decisions when it attempts to remove a potentially hazardous substance from commercial use in a market with competing firms. Specifically, we determine under what market and regulatory conditions an NGO should target the industry versus the regulatory body to influence firms to replace the substance. We examine how the NGO's strategy changes as the NGO's pragmatism (i.e., the extent to which the NGO incorporates firms' profits into its decision making) increases. Our results demonstrate that when the NGO is less pragmatic, it should examine the existing market structure to determine whether to target the industry or the regulatory body. However, as the pragmatism of the NGO increases, the NGO should increasingly leverage the competition between firms to ensure that a replacement is available to consumers. We examine multiple extensions including varying the competition dynamics, the NGO targeting both the industry