Encouraging suppliers to process innovations

Autor: Toni Jarimo, Urho Pulkkinen, Ahti Salo
Jazyk: angličtina
Rok vydání: 2005
Předmět:
Zdroj: Jarimo, T, Pulkkinen, U & Salo, A 2005, ' Encouraging suppliers to process innovations : A game theory approach ', International Journal of Technology Intelligence and Planning, vol. 1, no. 4, pp. 403-423 . https://doi.org/10.1504/IJTIP.2005.008590
ISSN: 1740-2840
1740-2832
DOI: 10.1504/IJTIP.2005.008590
Popis: This paper studies the design of process-innovation incentives in supplier networks. A real-life case study from the boat-building industry is presented to illustrate the importance of explicitly encouraging suppliers to continuous improvement. Motivated by the case study, we constructed a game theory model trying to capture the possible conflicting interests of different parties in a company network. Using our model, we applied three different bargaining rules in order to determine ex-ante profit-sharing principles that award process-innovations. The aim of profit sharing is that the efficiency-improving arrangements can be implemented so that none of the network companies has to incur losses. Consequently, if the profit-sharing principles are ex-ante contracted, then the network companies have the incentive to innovate.
Databáze: OpenAIRE