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Innovation Incentives in Enterprise Networks: A Game Theoretic Approach

  • Toni Jarimo

Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review

Abstract

This paper studies the determination of innovation incentives in enterprise networks through an application of game theoretic modelling. Here, game theory provides tools for the formal analysis of situations where multiple decision-makers may have partially conflicting interests, but cooperation between them is allowed. An example from the boat-building industry is presented to illustrate the relevance of innovation incentives in enterprise networks. Specifically, three different equilibrium concepts are applied to determine innovation incentives under different circumstances. The proposed model helps award innovations that improve the efficiency of the network. In addition, the efficiency-improving arrangements can be implemented so that none of the network companies has to suffer. Consequently, the enterprise network becomes innovative and the network companies need not fear their own losses when the efficiency-improving arrangements are implemented. The model also helps share the surplus utility gained through the innovation among the companies of the network.
Original languageEnglish
Title of host publicationPOM 2004 - 2nd World Conference - 15th Annual POMS Conference
Subtitle of host publicationPOM's Expanding Constellation
EditorsSushil Gupta, Nimisha Garg
PublisherProduction & Operations Management Society
Number of pages14
Publication statusPublished - 2004
MoE publication typeA4 Article in a conference publication
Event2nd World Conference on Production and Operations Management and 15th Annual POM Conference - Cancun, Mexico
Duration: 30 Apr 20043 May 2004

Publication series

SeriesComplete papers of the World Conference on Production and Operations Management
ISSN1548-4882

Conference

Conference2nd World Conference on Production and Operations Management and 15th Annual POM Conference
Country/TerritoryMexico
CityCancun
Period30/04/043/05/04

Keywords

  • network economy
  • enterprise networks
  • game theory
  • innovation management
  • demand supply chain management

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