Qiao Wu, Shuning Zhang, Hongye Zhang, Justin Zuopeng Zhang
{"title":"Strategic evolution in manufacturer–supplier collaboration: A game-theoretic exploration of product customization dynamics","authors":"Qiao Wu, Shuning Zhang, Hongye Zhang, Justin Zuopeng Zhang","doi":"10.1002/mde.4344","DOIUrl":null,"url":null,"abstract":"<p>Amid rising demand for personalized products, manufacturers are forming collaborative bonds with suppliers, driven by revenue and cost-sharing arrangements. This study presents an evolutionary game model examining collaboration nuances and analyzes the impact of customization, revenue, and cost-sharing ratios. Findings reveal customization's bidirectional effect on collaboration and a distinctive relationship between revenue-sharing and collaboration probability. Increased cost-sharing ratios deter manufacturers from collaboration, favoring revenue-sharing mechanisms to incentivize supplier participation. The study highlights revenue-sharing's efficacy in promoting collaboration between manufacturers and suppliers to enhance product competitiveness.</p>","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":"45 8","pages":"5491-5502"},"PeriodicalIF":2.7000,"publicationDate":"2024-07-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Managerial and Decision Economics","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/mde.4344","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Amid rising demand for personalized products, manufacturers are forming collaborative bonds with suppliers, driven by revenue and cost-sharing arrangements. This study presents an evolutionary game model examining collaboration nuances and analyzes the impact of customization, revenue, and cost-sharing ratios. Findings reveal customization's bidirectional effect on collaboration and a distinctive relationship between revenue-sharing and collaboration probability. Increased cost-sharing ratios deter manufacturers from collaboration, favoring revenue-sharing mechanisms to incentivize supplier participation. The study highlights revenue-sharing's efficacy in promoting collaboration between manufacturers and suppliers to enhance product competitiveness.
期刊介绍:
Managerial and Decision Economics will publish articles applying economic reasoning to managerial decision-making and management strategy.Management strategy concerns practical decisions that managers face about how to compete, how to succeed, and how to organize to achieve their goals. Economic thinking and analysis provides a critical foundation for strategic decision-making across a variety of dimensions. For example, economic insights may help in determining which activities to outsource and which to perfom internally. They can help unravel questions regarding what drives performance differences among firms and what allows these differences to persist. They can contribute to an appreciation of how industries, organizations, and capabilities evolve.