Should we keep the tradition or follow the trend? The optimal live-streaming e-commerce mode selection in a sustainable and circular supply chain under competition

Live-streaming e-commerce has emerged as a dominant force in global commerce, yet its integration with traditional sustainable and circular supply chains (SCSCs) remains understudied. This research fills this gap by presenting a game-theoretical model that explores optimal mode selection for live-streaming e-commerce within SCSCs, considering network externality effects. The findings show that, first, for a given strength of network externality, when the commission fee is relatively low (high), manufacturers tend to use live-streaming e-commerce (digital SCSC). Interestingly, when the commission fee is relatively high while the network externality is moderate, manufacturers tend to prefer a hybrid strategy (i.e., one manufacturer uses a digital SCSC while the other manufacturer uses a traditional SCSC). Second, when the network externality is relatively strong, the return rate of end-of-life products under the hybrid strategy or pure digital SCSC strategy is higher than that under the pure traditional SCSC in most cases. Moreover, this changing trend is less affected by the recycling efficiency of the SCSC. Finally, when the ratio of recycling efficiency to new product cost is higher (lower) than a certain threshold, a pure digital SCSC strategy (pure traditional SCSC strategy) is always Pareto effective. This paper not only advances the understanding of live-streaming e-commerce within SCSCs but also offers actionable insights for businesses seeking to navigate the evolving landscape of digital commerce and environmental sustainability.