Two-sided network coordination for competition-based manufacturing technology standard diffusion along “Belt and Road” markets

ZHOU Qing, WU Zhengyi, CHEN Wenchong

Systems Engineering - Theory & Practice ›› 2024, Vol. 44 ›› Issue (12) : 3917-3931.

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Systems Engineering - Theory & Practice ›› 2024, Vol. 44 ›› Issue (12) : 3917-3931. DOI: 10.12011/SETP2022-2270

Two-sided network coordination for competition-based manufacturing technology standard diffusion along “Belt and Road” markets

  • ZHOU Qing1,2, WU Zhengyi2, CHEN Wenchong1,2
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Abstract

The diffusion of a manufacturing technology standard (MTS) which is transformed and upgraded by a local standard alliance is a significant method for a Chinese corporation to occupy the market of “Belt and Road” and in turn promote the transformation of local industry chain. Considering the two dimensional attributes of a MTS (i.e., MTS-based product diffusion and technology diffusion), this paper proposes a new decision-making model for the two-sided networks coordination problem to accelerate the MTS diffusion along “Belt and Road”. Based on the decision-making processes of customers, standard alliance, and local manufacturing enterprises, a multi-objective leader and multi-follower interactive optimization is formulated after introducing a contract design and adoption mechanisms to reveal the processes of such two-sided network coordination. The new product pricing problem and component procurement contract design problem with standard competition is defined as the leader optimization problem to maximize the degree of new product diffusion, the quantity of local manufacturing enterprises adopted new technologies, and the benefit of standard alliance simultaneously. The contract acceptance and component supply problem of each local manufacturing enterprise is defined as the follower to maximize the net revenue of each one. The nested NSGA-II algorithm is designed to solve the interactive optimization problem. The effectiveness of the model and the algorithm is validated by a practical case study.

Key words

manufacturing technology standard / standard alliance / two-sided networks coordination / multi-objective leader-follower interactive optimization / nested NSGA-II

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ZHOU Qing , WU Zhengyi , CHEN Wenchong. Two-sided network coordination for competition-based manufacturing technology standard diffusion along “Belt and Road” markets. Systems Engineering - Theory & Practice, 2024, 44(12): 3917-3931 https://doi.org/10.12011/SETP2022-2270

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Funding

Key Program of National Natural Science Foundation of China (71932005);National Natural Science Foundation of China (71874046)
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