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A Study on the Cooperation & Innovation of Supply Chain Enterprises Within the Industry Cluster

Author: LiangDan
Tutor: CuiYuMing
School: Shandong University
Course: Industrial Economics
Keywords: industry cluster supply chain cooperation and innovation technology spillover
CLC: F274
Type: Master's thesis
Year: 2011
Downloads: 155
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Abstract


In the course of globalization where economic resources are being reallocated and international markets getting increasingly competitive, companies are confronted with greater limitations in resources, customerized demands and shorter product life cycles. To integrate efforts of all companies in a supply chain is to integrate assets and capabilities, to achieve innovations in the industry. One possibility for that is through the industry cluster, because it can create an environment favorable for firms in the supply chain to work together and think different, with shared information, technological exchange and better interaction. That is why a study on the cooperation and innovation of supply chain enterprises within the industry cluster matters so much.This paper takes on a different approach, analyzing the issue without excluding the big environment, discussing the necessity of long-term cooperation and innovation, and introducing the supporting policies.It first presents theoretical analysis on supply chain and cooperation and innovation based on it, suggesting that this could generate many benefits like reduced costs, complementary resources and enhanced creativity, though it does have risks too.The next part concentrates on the industry cluster. After an introduction of the formation of supply chain within the cluster and relations among key companies, the focus goes on to the relevance between industry cluster and cooperative creation. The conclusion can be drawn from the game model that a joint effort from suppliers and manufacturers on creation can lead to a growth in the overall profit of the chain system.However, due to an incomplete contract in the real world, there are inevitably opportunist behaviors in the cooperative work. To this question, this paper has also proposed ideas about the precautions to take in order to stand up to the situation. It finds out that, compared to exclusive contracts, implicit contracts between upper and downstream enterprises are more effective in preventing the misbehavior and maintaining a friendly and creative atmosphere.

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