Value co-creation in group enterprises: an evolutionary game theory-based analysis

Abstract

Information barriers exist between subsidiaries in a group enterprise, where each subsidiary acts independently, and hinder rational allocation and utilisation of resources. This study proposed a value co-creation model consisting of heterogeneous subsidiaries in a group enterprise and consumers. By constructing a three-party evolutionary game model, we discussed the impact of information leakage risk, punishment intensity, consumer experience, and reputation on the strategy evolution process, which means the proportion of strategy choices for the three entities over time. We analysed and verified the evolutionary process of the value co-creation system in different scenarios. This study revealed the ‘butterfly effect’ of value co-creation within the group enterprise, highlighting how different combinations of decision-making probabilities among the three entities in the initial stage can result in diverse outcomes, even when starting from identical conditions. The study also found that under certain conditions, group subsidiaries may sacrifice their own interests for the overall interests of cooperation. This study yielded the counterintuitive conclusion that in a stable state, the choice of cooperation strategies between subsidiaries is not directly related to their willingness to share knowledge.

Keywords:

• Value co-creation
• group enterprise
• evolutionary game
• customer participation
• knowledge sharing

Acknowledgments

We gratefully acknowledge all the editors and reviewers for their constructive comments which greatly improved the work.

Data availability statement

The data that support the findings of this study are available from the corresponding author, Ziqian Wei, upon reasonable request.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This research was supported by the National Natural Science Foundation of China [grant number 92167206].

Notes on contributors

Runliang Dou

Runliang Dou received a Ph.D. in Management Science and Engineering from Tianjin University, China in 2007. He is currently a full-time professor at College of Management and Economics, Tianjin University. His main research interests include intelligent manufacturing and digital ecology. He has published his research in Knowledge Based Systems, Applied Soft Computing, Computers & Industrial Engineering, Journal of Intelligent Manufacturing, etc.

Guofang Nan

Guofang Nan received a Ph.D. from Tianjin University, China in 2004. He is currently a full-time professor at School of Management, Hainan University. His main research interests include platform economy and business intelligence. He has published his research in Management Science, Information Systems Research, Journal of Management Information Systems, etc.

Ziqian Wei

Ziqian Wei is a master student in College of Management and Economics, Tianjin University. His main research interests include value co-creation and information system.

Chia-Yu Hsu

Chia-Yu Hsu received a Ph.D. in Industrial Engineering and Engineering Management, National Tsing Hua University, Taiwan. He is currently a full-time professor at Department of Industrial Management, National Taiwan University of Science and Technology. His main research interests include big data analytics and machine learning. He has published his research in Journal of Intelligent Manufacturing, IEEE Transactions on Semiconductor Manufacturing, Computers & Industrial Engineering, etc.