Affiliation:
1. School of Logistics and E‐commerce Zhejiang Wanli University Ningbo China
2. Department of Management, Coggin College of Business University of North Florida Jacksonville FL 32224 USA
Abstract
AbstractAmid rising demand for personalized products, manufacturers are forming collaborative bonds with suppliers, driven by revenue and cost‐sharing arrangements. This study presents an evolutionary game model examining collaboration nuances and analyzes the impact of customization, revenue, and cost‐sharing ratios. Findings reveal customization's bidirectional effect on collaboration and a distinctive relationship between revenue‐sharing and collaboration probability. Increased cost‐sharing ratios deter manufacturers from collaboration, favoring revenue‐sharing mechanisms to incentivize supplier participation. The study highlights revenue‐sharing's efficacy in promoting collaboration between manufacturers and suppliers to enhance product competitiveness.