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An evolutionary game-theoretic analysis of cooperation strategy between SMEs and cross-border e-commerce platforms considering the cross-network effect

Shan Du ( Xi'an University of Posts and Telecommunications, School of Economics and Management, Xi'an, China)

Kybernetes

ISSN: 0368-492X

Article publication date: 28 February 2023

Issue publication date: 5 April 2024

238

Abstract

Purpose

This paper aims to propose the mechanism of cross-network effect embedded, which can help cross-border e-commerce (CBEC) platforms strengthen cooperative relationships with sellers more equitably and effectively by using the network structural characteristics of the platforms themselves.

Design/methodology/approach

A two-stage evolutionary game model has been used to confirm the influence factors. The mathematical derivation of evolutionary game analysis is combined with the simulation method to examine the role of cross-network effect in cooperation. The evolutionary game model based on the cross-network effect is proposed to achieve better adaptability to the study of cooperation strategy from the two-sided market perspective.

Findings

The evolutionary game model captures the interactions of cross-network effect and the influence factors from a dynamic perspective. The cross-network effect has a certain substitution on the revenue-sharing rate of SMEs. CBEC platforms can enhance the connection between consumers and the website by improving the level of construction, which is a good way to attract sellers more cost-effectively and efficiently.

Research limitations/implications

This study provides a new method for the validation of the cross-network effect, especially when data collection is difficult. But this method is only a numerical simulation. So the conclusions still need to be further tested empirically. Besides, researchers are advised to explore the relationship between the added user scale and the cross-network effect in some specificCBEC platforms.

Practical implications

This study provides a new method for the validation of the cross-network effect, especially when data collection is difficult. But this method is only a numerical simulation. So the conclusions still need to be further tested empirically. Besides, researchers are advised to explore the relationship between the added user scale and the cross-network effect in some specific CBEC platforms.

Originality/value

Investigations that study cooperation strategy from the cross-network effect perspective in CBEC are limited. The research figured out which influence factors are affected by the cross-network effect in cooperation. A two-stage evolutionary game model was proposed to explain the interaction of the factors. The evolutionary game analysis with a simulation method was combined to highlight the role of cross-network effect on cooperation strategy to give a deeper investigation into the sustainable cooperation ofCBEC.

Keywords

Acknowledgements

The author would like to thank the editor and the anonymous reviewers for their comments, which have greatly improved this paper.

Funding: This work was supported by Key Scientific Research Project of Education Department of Shaanxi Province (Grant Number 22JT040, 22JT038), Soft Science Research Program of Science and Technology Department of Shaanxi Province (Grant Number 2022KRM069, 2017KRM060), Teaching Reform project of Xi’an University of Posts and Telecommunications (Grant Number YJGJ2022037).

Citation

Du, S. (2024), "An evolutionary game-theoretic analysis of cooperation strategy between SMEs and cross-border e-commerce platforms considering the cross-network effect", Kybernetes, Vol. 53 No. 5, pp. 1857-1887. https://doi.org/10.1108/K-09-2022-1316

Publisher

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Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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