Abstract: How to develop a closed-loop supply chain for the recycling of waste products and achieve value co-creation is the key issue for the smart phone supply chain to promote circular economy and improve competitiveness. This paper introduces shareholding cooperation and customer engagement, analyzing value co-creation in closed-loop supply chains from multiple perspectives. It explores the effects of shareholding ratio, commission rate and customer engagement on the decisions of supply chain members, the recycling amount of waste products, the profit of supply chain members, the customer surplus, and the total value of the closed-loop supply chain. Results show that shareholding cooperation is beneficial to improving the service level of recycling platforms. When customer engagement with a recycling platform is high or the cost coefficient of recycling service level is low, shareholding cooperation can promote the recycling of waste products. Shareholding by manufacturers in recycling platforms is a profit strategy for recycling platforms; however, in the long term, manufacturers and recycling platforms should set a low shareholding ratio and a moderate commission rate when customer response is high. In this way, the profit of both parties increases, leading to stable shareholding cooperation and promoting the realization of value co-creation in closed-loop supply chains.

Key words: closed-loop supply chains, value co-creation, shareholding cooperation, customer engagement