Government regulatory policies for digital transformation in small and medium-sized manufacturing enterprises: an evolutionary game analysis
Abstract In recent years, digital transformation (DT) has become an inevitable choice for manufacturing enterprises to achieve sustainable development. As a large number of enterprise groups, small and medium-sized manufacturing enterprises (SMMEs) play an important role in the industrial developmen...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Springer Nature
2023-10-01
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| Series: | Humanities & Social Sciences Communications |
| Online Access: | https://doi.org/10.1057/s41599-023-02250-4 |
| _version_ | 1797647332282466304 |
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| author | Jianhua Zhu Julien S. Baker Zhiting Song Xiao-Guang Yue Wenqi Li |
| author_facet | Jianhua Zhu Julien S. Baker Zhiting Song Xiao-Guang Yue Wenqi Li |
| author_sort | Jianhua Zhu |
| collection | DOAJ |
| description | Abstract In recent years, digital transformation (DT) has become an inevitable choice for manufacturing enterprises to achieve sustainable development. As a large number of enterprise groups, small and medium-sized manufacturing enterprises (SMMEs) play an important role in the industrial development of China. However, due to insufficient resource investment, high transformation costs, lack of talents, and unclear transformation pathways, how the government can help SMMEs carry out DT has become an important research topic. Based on this background, this study considers the strategies of government, third-party demonstration enterprises (TDEs) and SMMEs, develops and builds a three-party evolutionary game model, and puts forward a governance mechanism for effective DT strategies (TDEs guide DT and SMMEs conduct DT). This study has drawn many interesting conclusions. (1) If the government chooses not to regulate, when SMMEs are risk-neutral, the government only needs to increase the rewards for SMMEs to effectively promote DT. When SMMEs are risk-averse, the government needs to increase the penalties for SMMEs and increase the rewards for TDEs to effectively promote DT. (2) If the government chooses to regulate, when SMMEs are risk-neutral, the government needs to increase the penalties for both TDEs and SMMEs to effectively promote DT. When SMMEs are risk-averse, the government only needs to increase penalties on SMMEs or TDEs to effectively promote DT. (3) When SMMEs are risk-averse, the government’s best choice is regulation. Because when the government does not regulate, DT may fail even if the government increases the penalties for SMMEs and increases the incentives for TDEs. |
| first_indexed | 2024-03-11T15:15:48Z |
| format | Article |
| id | doaj.art-638f688f9bb342de8dd23a81227cae2e |
| institution | Directory Open Access Journal |
| issn | 2662-9992 |
| language | English |
| last_indexed | 2024-03-11T15:15:48Z |
| publishDate | 2023-10-01 |
| publisher | Springer Nature |
| record_format | Article |
| series | Humanities & Social Sciences Communications |
| spelling | doaj.art-638f688f9bb342de8dd23a81227cae2e2023-10-29T12:17:59ZengSpringer NatureHumanities & Social Sciences Communications2662-99922023-10-0110111810.1057/s41599-023-02250-4Government regulatory policies for digital transformation in small and medium-sized manufacturing enterprises: an evolutionary game analysisJianhua Zhu0Julien S. Baker1Zhiting Song2Xiao-Guang Yue3Wenqi Li4School of Economics and Management, Harbin Institute of Technology (Weihai)Department of Sport, Physical Education and Health, Hong Kong Baptist UniversitySchool of Economics and Management, Jiangxi University of Science and TechnologyDepartment of Computer Science and Engineering, European University CyprusCollege of Humanities, Arts and Social Sciences, Nanyang Technological UniversityAbstract In recent years, digital transformation (DT) has become an inevitable choice for manufacturing enterprises to achieve sustainable development. As a large number of enterprise groups, small and medium-sized manufacturing enterprises (SMMEs) play an important role in the industrial development of China. However, due to insufficient resource investment, high transformation costs, lack of talents, and unclear transformation pathways, how the government can help SMMEs carry out DT has become an important research topic. Based on this background, this study considers the strategies of government, third-party demonstration enterprises (TDEs) and SMMEs, develops and builds a three-party evolutionary game model, and puts forward a governance mechanism for effective DT strategies (TDEs guide DT and SMMEs conduct DT). This study has drawn many interesting conclusions. (1) If the government chooses not to regulate, when SMMEs are risk-neutral, the government only needs to increase the rewards for SMMEs to effectively promote DT. When SMMEs are risk-averse, the government needs to increase the penalties for SMMEs and increase the rewards for TDEs to effectively promote DT. (2) If the government chooses to regulate, when SMMEs are risk-neutral, the government needs to increase the penalties for both TDEs and SMMEs to effectively promote DT. When SMMEs are risk-averse, the government only needs to increase penalties on SMMEs or TDEs to effectively promote DT. (3) When SMMEs are risk-averse, the government’s best choice is regulation. Because when the government does not regulate, DT may fail even if the government increases the penalties for SMMEs and increases the incentives for TDEs.https://doi.org/10.1057/s41599-023-02250-4 |
| spellingShingle | Jianhua Zhu Julien S. Baker Zhiting Song Xiao-Guang Yue Wenqi Li Government regulatory policies for digital transformation in small and medium-sized manufacturing enterprises: an evolutionary game analysis Humanities & Social Sciences Communications |
| title | Government regulatory policies for digital transformation in small and medium-sized manufacturing enterprises: an evolutionary game analysis |
| title_full | Government regulatory policies for digital transformation in small and medium-sized manufacturing enterprises: an evolutionary game analysis |
| title_fullStr | Government regulatory policies for digital transformation in small and medium-sized manufacturing enterprises: an evolutionary game analysis |
| title_full_unstemmed | Government regulatory policies for digital transformation in small and medium-sized manufacturing enterprises: an evolutionary game analysis |
| title_short | Government regulatory policies for digital transformation in small and medium-sized manufacturing enterprises: an evolutionary game analysis |
| title_sort | government regulatory policies for digital transformation in small and medium sized manufacturing enterprises an evolutionary game analysis |
| url | https://doi.org/10.1057/s41599-023-02250-4 |
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