Cooperative Innovation Evolutionary Game Analysis of Industrialized Building Supply Chain

Abstract:

Great changes have taken place in construction methods of industrial building relative to traditional construction. The cooperation between construction contractors, prefabricated parts suppliers and other materials and equipment suppliers in the supply chain of the industrial building can not be ignored. The evolutionary game theory can be used to explain the dynamic trend of the relationship until it is stable. The evolutionary game theory is applied to study the process and method of cooperative innovation between construction contractor and many subcontractors. Based on evolutionary game theory, the paper discusses the process and method of cooperative innovation between the construction contractors and numerous subcontractors. It focuses on the analysis of the influence of cooperative profit distribution, spillover effect, innovation subsidies and cooperation risk sharing for evolutionary stable strategy. The evolutionary game model of cooperation parties is constructed. The key indexes such as profit, risk loss, distribution of excess income and innovation cost are considered comprehensively. The results show that with the increasing of the spillover effect, innovation cooperation, suppliers’ innovation income and excess returns of cooperation innovation, the system will tend to the stability of cooperation. And with the increasing of the contractor's subsidy coefficient, the innovation cost, cooperation innovation risk cost, the system will tend to uncooperative. There exists an optimal distribution coefficient of excess income, which can strengthen the cooperation willingness of both sides. This study provides a guidance for the cooperative innovation of the supply chain participating parties.

• Periodical: Applied Mechanics and Materials (Volume 878)
• Pages: 213-218
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.878.213
• Online since: February 2018
• Authors: Yan Yan Wang*, Hong Ren, Fan Rong Ji
• Keywords: Cooperative Innovation, Evolutionary Game, Income Distribution, Supply Chain

References

[1] E. C. W. Lou, K. A. M. Kamar. Industrialized Building Systems: Strategic Outlook for Manufactured Construction in Malaysia, J. Archit. Eng. 18 (2012) 69-74.

DOI: 10.1061/(asce)ae.1943-5568.0000072

[2] M. M. A. Khalfan, P. McDermott, Innovating for supply chain integration within construction, Constr. Innov. 6 (2006) 143–157.

DOI: 10.1108/14714170610710695

[3] L. Bygballe, M. Jahre, A. Swärd, Partnering relationships in construction: a literature review. J. Purch, Suppl. Manag. 16 (2010) 239–253.

DOI: 10.1016/j.pursup.2010.08.002

[4] J. B. Zhu, Z. H. Sheng, Q. Q. Shi. The Cooperative Innovation Mechanism between the Contractor and Subcontractor with Spillover Effect in Mega Project Based on Evolutionary Game Theory, Syst. Eng. 34 (2016) 53-59.

[5] X. B. Li, E. Qi. Toward an Evolutionary Game Model for Collaborative Innovation of Supply Chain in View of Spillover Effect, Journal of Beijing Jiaotong University. 13 (2014) 8-14.

[6] Y. H. Shan. Technology-Cooperation Innovation Mechanism of Housing Enterprises based on Evolutionary Game Theory, J. Syst. Manag. 24 (2015) 673-681.

[7] B. Huang, W. D. Meng, Y. Y. Li. Supply chain cooperative R &D game model based on bidirectional spillover effect, Sci. Tech. Manag. Res. 3 (2009) 177-179.

[8] S. Y. Xie. Economic Game theory (Third Edition), Shanghai, Fudan University press, (2007).

[9] D. Friedman. Evolutionary Games in Economics, Econometrica. 59 (1991) 637- 666.