Decision-Making Mechanism of Cooperative Innovation between Clients and Service Providers Based on Evolutionary Game Theory

With the maturity of the service outsourcing market and the development of business relations, the core of outsourcing is shifting from transactional services to risk sharing and value creation. The client and service provider have an increasing interest in service innovation. Although cooperative i...

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Main Authors: Zhiyuan Xu, Jiming Cao, Yunhua Xu, Yeke Sun, Xingjing Zhang
Format: Article
Language:English
Published: Wiley 2022-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2022/8774462
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author Zhiyuan Xu
Jiming Cao
Yunhua Xu
Yeke Sun
Xingjing Zhang
author_facet Zhiyuan Xu
Jiming Cao
Yunhua Xu
Yeke Sun
Xingjing Zhang
author_sort Zhiyuan Xu
collection DOAJ
description With the maturity of the service outsourcing market and the development of business relations, the core of outsourcing is shifting from transactional services to risk sharing and value creation. The client and service provider have an increasing interest in service innovation. Although cooperative innovation between them has many benefits, the two parties do not necessarily establish a cooperative innovation relationship. Regarding this issue, an evolutionary game focusing on client-service provider cooperative innovation behavior is constructed and solved. Based on the results and a corresponding numerical simulation, the decision-making mechanism of the cooperative innovation behavior is studied, and suggestions are provided regarding how to promote cooperative innovation. The results show that the benefits of both the client and service provider when they innovate cooperatively being greater than that when they innovate independently cannot guarantee that the system will certainly evolve to a stable state in which both parties adopt a cooperation strategy. However, as long as a condition in which either party gains more than zero when it innovates independently is established in addition to the preceding condition, the system will certainly evolve to a stable state in which both parties adopt a cooperative strategy. The following measures can be taken to promote client-service provider cooperation: improving the initial probabilities of the two parties choosing the cooperative strategy; increasing the innovation benefit when one party innovates independently; reducing the innovation cost and spillover coefficient when one party innovates independently; increasing the penalty when one party cooperates and the other party does not; decreasing the innovation cost when the two parties both choose the cooperation strategy; increasing the excess benefit when the two parties both cooperate; setting reasonable benefit distribution and cost sharing proportions.
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institution Kabale University
issn 1607-887X
language English
publishDate 2022-01-01
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series Discrete Dynamics in Nature and Society
spelling doaj-art-7ddec2dabb0b426d901872583722a5422025-02-03T06:00:27ZengWileyDiscrete Dynamics in Nature and Society1607-887X2022-01-01202210.1155/2022/8774462Decision-Making Mechanism of Cooperative Innovation between Clients and Service Providers Based on Evolutionary Game TheoryZhiyuan Xu0Jiming Cao1Yunhua Xu2Yeke Sun3Xingjing Zhang4Shanghai Chest HospitalSchool of Economics and ManagementShanghai Chest HospitalShanghai Chest HospitalShanghai Chest HospitalWith the maturity of the service outsourcing market and the development of business relations, the core of outsourcing is shifting from transactional services to risk sharing and value creation. The client and service provider have an increasing interest in service innovation. Although cooperative innovation between them has many benefits, the two parties do not necessarily establish a cooperative innovation relationship. Regarding this issue, an evolutionary game focusing on client-service provider cooperative innovation behavior is constructed and solved. Based on the results and a corresponding numerical simulation, the decision-making mechanism of the cooperative innovation behavior is studied, and suggestions are provided regarding how to promote cooperative innovation. The results show that the benefits of both the client and service provider when they innovate cooperatively being greater than that when they innovate independently cannot guarantee that the system will certainly evolve to a stable state in which both parties adopt a cooperation strategy. However, as long as a condition in which either party gains more than zero when it innovates independently is established in addition to the preceding condition, the system will certainly evolve to a stable state in which both parties adopt a cooperative strategy. The following measures can be taken to promote client-service provider cooperation: improving the initial probabilities of the two parties choosing the cooperative strategy; increasing the innovation benefit when one party innovates independently; reducing the innovation cost and spillover coefficient when one party innovates independently; increasing the penalty when one party cooperates and the other party does not; decreasing the innovation cost when the two parties both choose the cooperation strategy; increasing the excess benefit when the two parties both cooperate; setting reasonable benefit distribution and cost sharing proportions.http://dx.doi.org/10.1155/2022/8774462
spellingShingle Zhiyuan Xu
Jiming Cao
Yunhua Xu
Yeke Sun
Xingjing Zhang
Decision-Making Mechanism of Cooperative Innovation between Clients and Service Providers Based on Evolutionary Game Theory
Discrete Dynamics in Nature and Society
title Decision-Making Mechanism of Cooperative Innovation between Clients and Service Providers Based on Evolutionary Game Theory
title_full Decision-Making Mechanism of Cooperative Innovation between Clients and Service Providers Based on Evolutionary Game Theory
title_fullStr Decision-Making Mechanism of Cooperative Innovation between Clients and Service Providers Based on Evolutionary Game Theory
title_full_unstemmed Decision-Making Mechanism of Cooperative Innovation between Clients and Service Providers Based on Evolutionary Game Theory
title_short Decision-Making Mechanism of Cooperative Innovation between Clients and Service Providers Based on Evolutionary Game Theory
title_sort decision making mechanism of cooperative innovation between clients and service providers based on evolutionary game theory
url http://dx.doi.org/10.1155/2022/8774462
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