The evolution mechanism of the multi-value chain network ecosystem supported by the third-party platform

Xumei Zhang; Jiafeng Yuan; Bin Dan; Ronghua Sui; Wenbo Li

doi:10.3934/jimo.2021148

Article Contents

2022, Volume 18, Issue 6: 4071-4091. Doi: 10.3934/jimo.2021148

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The evolution mechanism of the multi-value chain network ecosystem supported by the third-party platform

School of Economics and Business Administration, Chongqing University, Chongqing, 400044, China

^*Corresponding author: zhangxumei@cqu.edu.cn
^*Corresponding author: zhangxumei@cqu.edu.cn

Received: February 28, 2021

Revised: May 31, 2021

Early access: September 2021

Published: September 2022

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Abstract

This paper aims to study the evolution mechanism of the third-party platform ecosystem. A multi-value chain network ecosystem composed of multiple manufacturers, multiple suppliers, several logistics providers and a third-party platform for manufacturing is considered. The system dynamics method is used to build the model, and this paper collects relevant industry and platform data to simulate the evolution of user scale and participants' revenues. Furthermore, the influence of platform subsidy and matching service level on the evolution is studied. The results show that the platform's evolution can be divided into four stages: emergence, growth, maturity and upgrade. This paper also finds that, at the emergence stage and the growth stage, the augmentation of the subsidies to manufacturers makes the manufacturers' scale expand but let their revenues decline. Meanwhile, the platform's revenues reduce at the emergence stage while increase at the growth stage. When the subsidy amount is high and continues to augment, its positive effect on the user scale is weakened while its negative effect on manufacturers' revenues is enhanced. Besides, improving the matching service level is not conducive to the platform's revenues at the emergence stage, but after entering the growth stage, it can increase user scale and the platform's revenues simultaneously.

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Mathematics Subject Classification: Primary: 58F15, 58F17; Secondary: 53C35.

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Figure 1. Multi-value chain network of the third-party platform

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Figure 2. SD diagram of the third-party platform ecosystem's evolution

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Figure 3. The evolution of the user scale

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Figure 4. The evolution of participants' revenues

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Figure 5. The evolution of the user scale under different subsidy amount

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Figure 6. SD diagram of the third-party platform ecosystem's evolution

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Figure 7. The evolution of the user scale under different matching service levels

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Figure 8. The evolution of the participants' revenues under different matching service levels

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Table 1. Survey on related works

Reference	Research object	Research problem	Certain stage/ Different stages
Siddiqui and Raza [37]; Sohaib et al. [38]; Valilai and Houshmand [42]; Yoo et al. [45]; Cen and Li [3]; Sheng et al. [39]; Que et al. [33]; Liu et al. [21]	Third-party platform for manufacturing	Issues in the early development stage or operation process	Certain stage
Liu et al. [22]; Ren et al. [34]	Third-party platform for manufacturing	Dynamic evolution of the platform	Certain stage
Tan et al. [40]; Kim [18]	Third-party platform for consumption/service	Strategies used in the evolution of the platform	Different stages
Zhu and Iansiti [46]; Casey and TÖyli [4]; Manchanda [5]; Ruutu et al. [35]	Third-party platform for consumption/service	Dynamic evolution of the platform	Certain stage
Goli et al. [7]; Goli et al. [8]; Khalilpourazari et al. [15]; Khalilpourazari et al. [16]; Lotfi et al. [23]; Tirkolaee et al. [41]; Goli et al. [9]; Khalilpourazari et al. [17]; Goli et al. [11]; Lotfi et al. [26]; Khalilpourazari et al. [13]; Khalilpourazari et al. [14]; Goli et al. [10]; Pahlevan et al. [32]; Lotfi et al. [27]; Lotfi et al. [28]	Value chain without considering the participation of the third-party platform	Optimization and operation of the value chain	Certain stage
This research	The multi-value chain network ecosystem supported by the third-party platform for manufacturing	Dynamic evolution of the platform	Different stages

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Table 2. Initial value of constants in the model

Notation	Variables	Value	Unit
$ {{N}_{M0}} $	Initial scale of manufacturers	10	User
$ {{N}_{S0}} $	Initial scale of suppliers	50	User
$ a $	Potential market demand	4500	Auto/(user*month)
$ s $	Supply per supplier	20000	Part/(user*month)
$ {{p}_{M}} $	Product price	100000	Yuan/auto
$ {{p}_{S}} $	Part price	800	Yuan/part
$ {{C}_{S}} $	Part cost	700	Yuan/part
$ \Delta t $	Duration of subsidy	6	Month
$ r $	Unit subsidy	500	Yuan/(user*month)
$ \rho $	Commission rate	0.005	-
$ f $	Unit logistics fee	18	Yuan/part
$ F $	Membership fee	200	Yuan/(user*month)
$ \Delta T $	Time before expansion	12	Month
$ \lambda $	Matching service level	0.8	-
$ \zeta $	Logistics service level	0.8	-
$ {{M}_{M0}} $	Manufacturer capacity before expansion	300	User
$ {{M}_{S0}} $	Supplier capacity before expansion	10000	User
$ {{M}_{M}} $	Manufacturer capacity after expansion	500	User
$ {{M}_{S}} $	Supplier capacity after expansion	15000	User

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