Government regulatory policies for digital transformation in small and medium-sized manufacturing enterprises: an evolutionary game analysis
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 Chin...
| Main Authors: | , , , , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2024
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| Online Access: | https://hdl.handle.net/10356/173874 |
| _version_ | 1826128110133706752 |
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| author | Zhu, Jianhua Baker, Julien S. Song, Zhiting Yue, Xiao-Guang Li, Wenqi |
| author2 | School of Humanities |
| author_facet | School of Humanities Zhu, Jianhua Baker, Julien S. Song, Zhiting Yue, Xiao-Guang Li, Wenqi |
| author_sort | Zhu, Jianhua |
| collection | NTU |
| description | 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 | 2024-10-01T07:19:34Z |
| format | Journal Article |
| id | ntu-10356/173874 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T07:19:34Z |
| publishDate | 2024 |
| record_format | dspace |
| spelling | ntu-10356/1738742024-03-09T16:55:39Z Government regulatory policies for digital transformation in small and medium-sized manufacturing enterprises: an evolutionary game analysis Zhu, Jianhua Baker, Julien S. Song, Zhiting Yue, Xiao-Guang Li, Wenqi School of Humanities Social Sciences Manufacturing enterprises Evolutionary game model 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. Published version This research was funded by Natural Science Foundation of Shandong Province (ZR2022QG030). 2024-03-04T07:08:58Z 2024-03-04T07:08:58Z 2023 Journal Article Zhu, J., Baker, J. S., Song, Z., Yue, X. & Li, W. (2023). Government regulatory policies for digital transformation in small and medium-sized manufacturing enterprises: an evolutionary game analysis. Humanities and Social Sciences Communications, 10(1). https://dx.doi.org/10.1057/s41599-023-02250-4 2662-9992 https://hdl.handle.net/10356/173874 10.1057/s41599-023-02250-4 2-s2.0-85175151679 1 10 en Humanities and Social Sciences Communications © The Author(s) 2023. Open Access. This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons license, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons license and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this license, visit http://creativecommons.org/ licenses/by/4.0/. application/pdf |
| spellingShingle | Social Sciences Manufacturing enterprises Evolutionary game model Zhu, Jianhua Baker, Julien S. Song, Zhiting Yue, Xiao-Guang Li, Wenqi Government regulatory policies for digital transformation in small and medium-sized manufacturing enterprises: an evolutionary game analysis |
| 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 |
| topic | Social Sciences Manufacturing enterprises Evolutionary game model |
| url | https://hdl.handle.net/10356/173874 |
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