An evolutionary game-theoretic analysis of cooperation strategy between SMEs and cross-border e-commerce platforms considering the cross-network effect

Abstract

PurposeThis paper aims to propose the mechanism of cross-network effect embedded, which can help cross-border e-commerce (CBEC) platforms strengthen cooperative relationships with sellers more equitably and effectively by using the network structural characteristics of the platforms themselves.Design/methodology/approachA two-stage evolutionary game model has been used to confirm the influence factors. The mathematical derivation of evolutionary game analysis is combined with the simulation method to examine the role of cross-network effect in cooperation. The evolutionary game model based on the cross-network effect is proposed to achieve better adaptability to the study of cooperation strategy from the two-sided market perspective.FindingsThe evolutionary game model captures the interactions of cross-network effect and the influence factors from a dynamic perspective. The cross-network effect has a certain substitution on the revenue-sharing rate of SMEs. CBEC platforms can enhance the connection between consumers and the website by improving the level of construction, which is a good way to attract sellers more cost-effectively and efficiently.Research limitations/implicationsThis study provides a new method for the validation of the cross-network effect, especially when data collection is difficult. But this method is only a numerical simulation. So the conclusions still need to be further tested empirically. Besides, researchers are advised to explore the relationship between the added user scale and the cross-network effect in some specificCBEC platforms.Practical implications This study provides a new method for the validation of the cross-network effect, especially when data collection is difficult. But this method is only a numerical simulation. So the conclusions still need to be further tested empirically. Besides, researchers are advised to explore the relationship between the added user scale and the cross-network effect in some specific CBEC platforms.Originality/valueInvestigations that study cooperation strategy from the cross-network effect perspective in CBEC are limited. The research figured out which influence factors are affected by the cross-network effect in cooperation. A two-stage evolutionary game model was proposed to explain the interaction of the factors. The evolutionary game analysis with a simulation method was combined to highlight the role of cross-network effect on cooperation strategy to give a deeper investigation into the sustainable cooperation ofCBEC.

A dynamic incentive mechanism for data sharing in manufacturing industry

“…Han et al (2022) combined evolutionary game with a Steinberg game and designed a dynamic hierarchical game. Du (2023) used a two-stage evolutionary game model to confirm the role of cross-network effects in the cooperation between e-merchants and sellers. Shi et al (2022) combined evolutionary dynamics with Q-Learning and verified that continuous evolutionary dynamics with a filtering mechanism can well predict the learning process of algorithms such as discrete Q-Learning.…”

Formation of Coordinated Alliance for China Railway Express Platforms Considering Logistics Cost Sharing

“…Ho et al (26) proposed the SBM-I-C DEA model to examine and suggest partners for Vietnamese logistics firms to form strategic alliances. Some researchers have used game theory to study the optimal strategy to select alliance members among different organizations, including: cooperation between container companies and ports (27), alliance among logistics companies and producers (28), reverse logistics cooperation between resource-intensive companies and energyintensive companies (29), those among domestic ecommerce companies and foreign logistics companies (30), as well as those among cross-border e-commerce platforms, logistics service providers and merchants (31). The above literature was mainly research on the methods of establishment of specific logistics enterprise alliances.…”

Evolutionary Game Analysis of Cross-Border E-Commerce Logistics Alliance Subject Considering Supply Chain Disruption Risk

“…Zhou Fuli et al [33] discussed the application of blockchain technology in the field of e-commerce, shifting towards the application of blockchain technology in CBEC by constructing an evolutionary game model composed of cross-border e-commerce platforms and merchants. Du Shan [34] utilized the network structure characteristics of cross-border e-commerce platforms, and adopted a two-stage evolutionary game model for the CBEC platform, consumers, and sellers, combined with model simulation methods to investigate the role of cross-network effects in cooperation.…”