The Evolution of Collective Strategies in SMEs’ Innovation: A Tripartite Game Analysis and Application

Financing difficulty is recognized as the main bottleneck in the technology innovation process of small- and medium-sized enterprises (SMEs). The governments generally provide financial support for SMEs’ innovation activities. Numerous research studies have been conducted on the role of the governme...

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Main Authors: Lixia Liu, Yuanshi Huang, Xueli Zhan
Format: Article
Language:English
Published: Wiley 2019-01-01
Series:Complexity
Online Access:http://dx.doi.org/10.1155/2019/9326489
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author Lixia Liu
Yuanshi Huang
Xueli Zhan
author_facet Lixia Liu
Yuanshi Huang
Xueli Zhan
author_sort Lixia Liu
collection DOAJ
description Financing difficulty is recognized as the main bottleneck in the technology innovation process of small- and medium-sized enterprises (SMEs). The governments generally provide financial support for SMEs’ innovation activities. Numerous research studies have been conducted on the role of the government in enterprises’ innovation, while there is no consistent conclusion on whether government subsidies can improve stakeholder collaboration and effectively ease financing constraints of SMEs’ innovation. Due to information asymmetry and the bounded rationality, the dynamic game among the government, external investors, and SMEs has the characteristics of complexity. This paper aims to explore the collective strategies of the major stakeholders in SMEs’ innovation and investigate the effect of antecedents on innovation activities. We establish a trilateral evolutionary game model on the relationship among the government, external investors, and SMEs. The simulation results show that the evolutionary system converges quickly to the equilibrium; when the government subsidies decrease, the external investors’ appraisal costs decrease and the investment amount and return rates of external investors increase. Furthermore, under the condition of government subsidies, external investors will not change their investment strategies even if the external investors’ recognition costs have exceeded their return on SMEs’ investment. The findings can provide good reference for the government to solve the financing problem of SMEs’ innovation.
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institution Kabale University
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spelling doaj-art-b1833bebbd3c48429d3b5ecc2ef682fd2025-08-20T03:39:25ZengWileyComplexity1076-27871099-05262019-01-01201910.1155/2019/93264899326489The Evolution of Collective Strategies in SMEs’ Innovation: A Tripartite Game Analysis and ApplicationLixia Liu0Yuanshi Huang1Xueli Zhan2School of Economics, Tianjin University of Commerce, Tianjin 300134, ChinaSchool of Economics, Tianjin University of Commerce, Tianjin 300134, ChinaCollege of Management and Economics, Tianjin University, Tianjin 300072, ChinaFinancing difficulty is recognized as the main bottleneck in the technology innovation process of small- and medium-sized enterprises (SMEs). The governments generally provide financial support for SMEs’ innovation activities. Numerous research studies have been conducted on the role of the government in enterprises’ innovation, while there is no consistent conclusion on whether government subsidies can improve stakeholder collaboration and effectively ease financing constraints of SMEs’ innovation. Due to information asymmetry and the bounded rationality, the dynamic game among the government, external investors, and SMEs has the characteristics of complexity. This paper aims to explore the collective strategies of the major stakeholders in SMEs’ innovation and investigate the effect of antecedents on innovation activities. We establish a trilateral evolutionary game model on the relationship among the government, external investors, and SMEs. The simulation results show that the evolutionary system converges quickly to the equilibrium; when the government subsidies decrease, the external investors’ appraisal costs decrease and the investment amount and return rates of external investors increase. Furthermore, under the condition of government subsidies, external investors will not change their investment strategies even if the external investors’ recognition costs have exceeded their return on SMEs’ investment. The findings can provide good reference for the government to solve the financing problem of SMEs’ innovation.http://dx.doi.org/10.1155/2019/9326489
spellingShingle Lixia Liu
Yuanshi Huang
Xueli Zhan
The Evolution of Collective Strategies in SMEs’ Innovation: A Tripartite Game Analysis and Application
Complexity
title The Evolution of Collective Strategies in SMEs’ Innovation: A Tripartite Game Analysis and Application
title_full The Evolution of Collective Strategies in SMEs’ Innovation: A Tripartite Game Analysis and Application
title_fullStr The Evolution of Collective Strategies in SMEs’ Innovation: A Tripartite Game Analysis and Application
title_full_unstemmed The Evolution of Collective Strategies in SMEs’ Innovation: A Tripartite Game Analysis and Application
title_short The Evolution of Collective Strategies in SMEs’ Innovation: A Tripartite Game Analysis and Application
title_sort evolution of collective strategies in smes innovation a tripartite game analysis and application
url http://dx.doi.org/10.1155/2019/9326489
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