Competing Through Innovation in Networked Manufacturing

Zilong Wang and Hechang Cai
Additional contact information
Zilong Wang: College of Economics and Management, Nanjing University of Aeronautics and Astronautics, China
Hechang Cai: College of Economics and Management, Nanjing University of Aeronautics and Astronautics, China

International Journal of Strategic Decision Sciences (IJSDS), 2025, vol. 15, issue 1, 1-29

Abstract: The authors examine how network externalities and various factors shape strategic interactions between manufacturers and technology suppliers in networked manufacturing contexts. Using an evolutionary game model, it explores manufacturers' radical vs. incremental innovation choices alongside suppliers' technology authorization vs. licensing strategies. The results show that both parties' strategies often fluctuate without stabilizing under different initial conditions. While higher returns from radical innovation motivate manufacturers toward breakthrough efforts, suppliers consistently favor licensing regardless of profit-sharing adjustments and are highly sensitive to radical innovation costs. In contrast, changes in licensing fees predominantly influence manufacturers' behaviors. Collaboration costs only lead to minor shifts in evolutionary trajectories.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://services.igi-global.com/resolvedoi/resolve.aspx?doi=10.4018/IJSDS.373201 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:igg:jsds00:v:15:y:2025:i:1:p:1-29

Access Statistics for this article

International Journal of Strategic Decision Sciences (IJSDS) is currently edited by Saeed Tabar

More articles in International Journal of Strategic Decision Sciences (IJSDS) from IGI Global
Bibliographic data for series maintained by Journal Editor ().