Research On Cooperative Innovation Mechanism Between Client And Service Provider In The Context Of Service Outsourcing

Since the 13 th Five Year Plan,China’s service outsourcing industry has maintained a high growth,and the service outsourcing market has been flourishing.With the development of economy and the maturity of outsourcing relationship,the focus of outsourcer(client)has shifted from outsourcing that based on transactional services to outsourcing that based on risk sharing and value co-creation.Both client and service provider are eager to obtain more benefits through service innovation.Although cooperative innovation has many advantages,the client and service provider do not necessarily establish a cooperative relationship in the actual situation of service outsourcing.Even if they establish a cooperative innovation relationship and carry out cooperative innovation activities,the mismatch of cooperation mode,the existence of opportunism,the unreasonable distribution of benefits and other factors may also lead to the failure of cooperative innovation.Reasonable and effective cooperative innovation mechanism is conducive to promote the success of cooperative innovation,and improve the benefits of client and service provider through service innovation.Therefore,this dissertation This article focuses on the theme of the cooperative innovation mechanism between customers and service providers in the context of service outsourcing,aims at the two major issues of whether they conduct and how they carry out cooperative innovation,and specifically studies how they make cooperative behavior decision,cooperative mode selection,contract design and selection,and benefit distribution in the process of cooperative innovation,so as to provide theoretical guidance and practical suggestions for the smooth development of cooperative innovation activities,and promote the successful realization of cooperative innovation.Based on game theory and regarded the cooperative innovation process between client and service provider as game process,this dissertation mainly adopts mathematical modeling method and constructs the game models,which embody the characteristics of service outsourcing situations,to study the decision-making mechanism of cooperative behavior,cooperation mode selection,contract design and selection,and benefit distribution mechanism.The optimal solution of each model is obtained and analyzed to solve these following key questions:(1)What is the internal mechanism of the choice of cooperative behavior strategies between the client and service provider;how can they form a stable relationship of cooperation in the process of service innovation.(2)Under different cooperation modes,what are the preconditions of innovation success;which cooperation mode has higher probability of innovation success;which cooperation mode do they prefer.(3)How should client design contracts to obtain optimal benefits when considering the duration of cooperative innovation projects;which kind of contract should the client conclude with the service provider to achieve different cooperative innovation objectives.(4)How to distribute the benefits of the two under different power structures;what are the differences of resources input,benefit share and income between the client and service provider.The main research contents and conclusions are as follows:(1)Research on cooperative behavior decision-making mechanism under bounded rationality.On the premise of bounded rationality of the client and service provider,an evolutionary game model are constructed to analyze the replication dynamics of the system and their evolutionary stability strategies,and study the change trajectory and evolution trend of their cooperative innovation behavior in the service innovation process.The results show that the profits of both the client and service provider when they innovate cooperatively being greater than that when they innovate independently can not guarantee that the system will evolve to a stable state in which both parties adopt cooperative strategies;However,as long as the condition that either party gains more than zero when he/she innovates independently is established along with the above one,the system will certainly evolve to a stable state in which both parties adopt cooperative strategies.These measures can be taken to promote the cooperation between them: increasing the innovation income when one party innovates alone;reducing the innovation cost when one party innovates alone;reducing the spillover coefficient when one party innovates alone;increasing the excess income when they cooperate;reducing the total cost when they cooperate;designing reasonable income distribution and cost sharing ratio.(2)Research on cooperation mode selection considering innovation uncertainty.The game models of benchmark,collaboration mode and funding mode are constructed,and the innovation success probability,the optimal input and income of the client and service provider are obtained.The preconditions of innovation success are discussed.The probability of innovation success and the optimal benefits of both parties under three modes are compared and analyzed.The results show that the preconditions of innovation success probability are different under different cooperation modes.Under certain conditions,the innovation success probability of one cooperation mode will be higher than that of another.For the client,compared with the benchmark model,the funding model should be preferred;when the innovation ability of service provider is less than a threshold or the synergy coefficient is greater than a threshold,the synergy mode should be preferred compared with the benchmark mode;when the innovation ability of service provider is greater than a threshold or the synergy coefficient is less than a threshold,the funding mode should be selected.For the service provider,when the innovation ability of service provider is less than a threshold,the collaborative mode should be preferred compared with the benchmark mode;when the innovation capability of service provider is in a certain range,the collaborative mode should be preferred compared with the benchmark mode;when the customer’s innovation ability is greater than a threshold,the collaborative mode should be preferred compared with the funding mode.(3)Research on the design and selection of cooperation contract considering the duration of innovation process.With the consideration of project duration effects,three games models are constructed and the optimal service quality,project duration and client’s profit under base case,performance-based contract and revenue sharing contract are figured out,compared and analyzed.Under performance-based contract and revenue sharing contract,as the service vendor’s innovation input cost coefficient and time cost coefficient increase,the service quality incentive coefficient and revenue sharing coefficient increase.Maximum social profit can be realized under revenue sharing contract.Suggestions on the contract selection are provided for the client:performance-based contract should be selected when the client prefers higher service quality,while revenue sharing contract is recommended when shorter project duration and higher profit are preferred.(4)Research on the benefit distribution mechanism under different power structures.Three game models are constructed and the optimal benefit share,resources input and profits under Client-Dominated,Supplier-Dominated and Power-Balance power structures are figured out and compared.The relationships between client’s resource contribution and optimal benefit share,resources input and profits are studied.The results show that benefit share,resources input and profits of client are the largest under Client-Dominated power structure,while those of supplier are the largest under Supplier-Dominated power structure.Social benefit is the largest under Power-Balance power structure.With the growth of client’s resource contribution,benefit share and resources input of the client increase,but those of the supplier decrease.The profits of the client and the supplier decrease at first and then increase with client’s resource contribution.This study not only enriches the theoretical achievements in the field of service outsourcing innovation and cooperative innovation,expands the relevant research on the cooperative innovation mechanism between client and service providers in the context of service outsourcing,but also extends the application of game theory in the research of cooperative innovation mechanism in the context of service outsourcing.It also provides management suggestions to promote the cooperative innovation between the client and service provider,decision support for their cooperation mode selection,practical guidance for the client to conclude an appproiate contract with the service provider and design the contract so as to get the optimal benefits,and strategic reference for the client and service provider to obtain higher benefits when distributing the benefits.