Cross-shareholding is increasingly used in supply chains to improve strategic synergy between companies. However, regulations on cross-ownership within green supply chains are still in their early stages of development. Cross-ownership affects both the government’s pricing strategy and its carbon reduction policies. Additionally, the cross-shareholding structure impacts the profitability of the supply chain by introducing power dynamics between manufacturers and retailers. When cross-shareholding regulations and models are implemented, manufacturers and retailers within the supply chain exhibit more substantial reductions in their carbon footprint and experience increased profits, particularly in decentralized supply chains when cross ownership surpasses a specific threshold. The adoption of cross-shareholding profit-sharing agreements could enhance the performance of green supply chains. This article synthesizes the views of scholars on cross shareholding in the supply chain. It uses analytical methods to evaluate the role of the negotiation process, trade credit, and cross-shareholding in the supply chain. The article uses jurisprudence to recommend a cross shareholding policy in the Philippines to enhance supply chain efficiency. It uses the “Stackelberg Leadership Model” to analyze the impact of cross-shareholding on two levels of the supply chain, offering recommendations for future implementation to improve supply chain efficiency. The article recommends that the Philippines’ supply chain policy include mechanisms to encourage new companies to join the existing cross-ownership network, capitalize on the impact of cross-shareholding on supply chain assessment, and develop ways to use equity ratio and trade credit. These recommendations aim to refine policy and legislation in the Philippines to effectively utilize trade credit, equity ratios, and cross-shareholdings in supply chain management.
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