IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i11p9004-d1162670.html
   My bibliography  Save this article

Research on Enterprise R&D Strategy of Product-Service Innovation Guided by Quality Preference

Author

Listed:
  • Shangwen Liu

    (School of Information and Software Engineering, University of Electronic Science and Technology of China, Chengdu 610054, China
    The Institute of Service-Oriented Manufacturing, Hangzhou 311100, China)

  • Shijie Zhou

    (School of Information and Software Engineering, University of Electronic Science and Technology of China, Chengdu 610054, China)

  • Hao Guan

    (The Institute of Service-Oriented Manufacturing, Hangzhou 311100, China)

  • Qian-Ming Zhang

    (The Institute of Service-Oriented Manufacturing, Hangzhou 311100, China)

  • Tong Qin

    (The Institute of Service-Oriented Manufacturing, Hangzhou 311100, China)

  • Jiarong Lin

    (The Institute of Service-Oriented Manufacturing, Hangzhou 311100, China)

Abstract

Research and development (R&D) plays a crucial role in reducing enterprise costs and enhancing competitiveness in the market. Customers’ quality preference for product-service is a key driver of enterprise sales. Consequently, studying R&D investment strategies holds significant research value. This paper aims to provide a comprehensive analysis of the relationship between customers’ quality preference for product-service, R&D investment, and product-service price. To achieve this, we improve the Stackelberg game model to consider these factors and use numerical simulation to investigate the optimal R&D strategy. Results show that an enterprise’s absorptive capacity positively influences its market demand and profit, while negatively impacting its competitors. A higher customers’ quality preference coefficient indicates a stronger competitive advantage. Moreover, implementing a non-cooperative R&D strategy not only helps enterprises expand their R&D investment scale and accumulate knowledge and technology, but also plays a positive role in increasing sales volume and profits. We suggest that enterprises should focus on improving their absorptive capacity and diversifying R&D strategy, while also considering customers’ quality preferences and market demand when making R&D investment decisions. Careful consideration should be given to the pros and cons of cooperative and non-cooperative R&D strategies to choose the most suitable approach.

Suggested Citation

  • Shangwen Liu & Shijie Zhou & Hao Guan & Qian-Ming Zhang & Tong Qin & Jiarong Lin, 2023. "Research on Enterprise R&D Strategy of Product-Service Innovation Guided by Quality Preference," Sustainability, MDPI, vol. 15(11), pages 1-16, June.
  • Handle: RePEc:gam:jsusta:v:15:y:2023:i:11:p:9004-:d:1162670
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/11/9004/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/15/11/9004/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-1137, December.
    2. Birgit Aschhoff & Tobias Schmidt, 2008. "Empirical Evidence on the Success of R&D Cooperation—Happy Together?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 33(1), pages 41-62, August.
    3. Ata A. Taleizadeh & Mohammad S. Moshtagh & Ilkyeong Moon, 2017. "Optimal decisions of price, quality, effort level and return policy in a three-level closed-loop supply chain based on different game theory approaches," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 11(4), pages 486-525.
    4. Saccani, Nicola & Visintin, Filippo & Rapaccini, Mario, 2014. "Investigating the linkages between service types and supplier relationships in servitized environments," International Journal of Production Economics, Elsevier, vol. 149(C), pages 226-238.
    5. Jonathan Asher Morashti & Youra An & Hyunmi Jang, 2022. "A Systematic Literature Review of Sustainable Packaging in Supply Chain Management," Sustainability, MDPI, vol. 14(9), pages 1-22, April.
    6. Mary Tripsas, 2008. "Customer preference discontinuities: a trigger for radical technological change," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(2-3), pages 79-97.
    7. Man Yu & Laurens Debo & Roman Kapuscinski, 2016. "Strategic Waiting for Consumer-Generated Quality Information: Dynamic Pricing of New Experience Goods," Management Science, INFORMS, vol. 62(2), pages 410-435, February.
    8. Lu, Jye-Chyi & Tsao, Yu-Chung & Charoensiriwath, Chayakrit, 2011. "Competition under manufacturer service and retail price," Economic Modelling, Elsevier, vol. 28(3), pages 1256-1264, May.
    9. Ali Ramezani Ghotbabadi & Setareh Feiz & Rohaizat Baharun, 2015. "Service Quality Measurements: A Review," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(2), pages 267-286, February.
    10. Luca Lambertini & Raimondello Orsini, 2015. "Quality Improvement and Process Innovation in Monopoly: A Dynamic Analysis," Working Paper series 15-12, Rimini Centre for Economic Analysis.
    11. Fouad El Ouardighi & Konstantin Kogan, 2013. "Dynamic conformance and design quality in a supply chain: an assessment of contracts’ coordinating power," Annals of Operations Research, Springer, vol. 211(1), pages 137-166, December.
    12. Joanna Poyago-Theotoky, 1997. "Research Joint Ventures And Product Innovation: Some Welfare Aspects," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 5(1), pages 51-73.
    13. Han, Xiaoya & Liu, Xin, 2020. "Equilibrium decisions for multi-firms considering consumer quality preference," International Journal of Production Economics, Elsevier, vol. 227(C).
    14. Vendrell-Herrero, Ferran & Bustinza, Oscar F. & Opazo-Basaez, Marco, 2021. "Information technologies and product-service innovation: The moderating role of service R&D team structure," Journal of Business Research, Elsevier, vol. 128(C), pages 673-687.
    15. Iqbal, Najaf & Naeem, Muhammad Abubakr & Suleman, Muhammed Tahir, 2022. "Quantifying the asymmetric spillovers in sustainable investments," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 77(C).
    16. Yu, Xinning & Lan, Yanfei & Zhao, Ruiqing, 2021. "Strategic green technology innovation in a two-stage alliance: Vertical collaboration or co-development?," Omega, Elsevier, vol. 98(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. L. Lambertini, 2016. "Coordinating R&D efforts for quality improvement along a supply chain," Working Papers wp1054, Dipartimento Scienze Economiche, Universita' di Bologna.
    2. Lambertini, Luca & Orsini, Raimondello & Palestini, Arsen, 2017. "On the instability of the R&D portfolio in a dynamic monopoly. Or, one cannot get two eggs in one basket," International Journal of Production Economics, Elsevier, vol. 193(C), pages 703-712.
    3. Sara Amoroso & Simone Vannuccini, 2019. "Teaming up with Large R&D Investors: Good or Bad for Knowledge Production and Diffusion?," SPRU Working Paper Series 2019-20, SPRU - Science Policy Research Unit, University of Sussex Business School.
    4. Spyros Arvanitis & Areti Gkypali & Kostas Tsekouras, 2014. "Knowledge Base, Exporting Activities, Innovation Openness and Innovation Performance," KOF Working papers 14-361, KOF Swiss Economic Institute, ETH Zurich.
    5. Chen, Xu & Luo, Zheng & Wang, Xiaojun, 2019. "Compete or cooperate: Intensity, dynamics, and optimal strategies," Omega, Elsevier, vol. 86(C), pages 76-86.
    6. Faria, Pedro & Schmidt, Tobias, 2007. "International cooperation on innovation: empirical evidence for German and Portuguese firms," Discussion Paper Series 1: Economic Studies 2007,30, Deutsche Bundesbank.
    7. Carboni, Oliviero A., 2012. "An empirical investigation of the determinants of R&D cooperation: An application of the inverse hyperbolic sine transformation," Research in Economics, Elsevier, vol. 66(2), pages 131-141.
    8. Reisinger, Markus & Ressner, Ludwig & Schmidtke, Richard & Thomes, Tim Paul, 2014. "Crowding-in of complementary contributions to public goods: Firm investment into open source software," Journal of Economic Behavior & Organization, Elsevier, vol. 106(C), pages 78-94.
    9. Giovanni Cerulli & Roberto Gabriele & Bianca Potì, 2016. "The role of firm R&D effort and collaboration as mediating drivers of innovation policy effectiveness," Industry and Innovation, Taylor & Francis Journals, vol. 23(5), pages 426-447, July.
    10. Du, Xianjin & Zhan, Huimin & Zhu, Xiaoxuan & He, Xiuli, 2021. "The upstream innovation with an overconfident manufacturer in a supply chain," Omega, Elsevier, vol. 105(C).
    11. Duarte Leite & Pedro Campos & Isabel Mota, 2011. "Computational Results on Membership in R&D Cooperation Networks: To Be or Not To Be in a Research Joint Venture," FEP Working Papers 420, Universidade do Porto, Faculdade de Economia do Porto.
    12. Song, Jian & Chutani, Anshuman & Dolgui, Alexandre & Liang, Liang, 2021. "Dynamic innovation and pricing decisions in a supply-Chain," Omega, Elsevier, vol. 103(C).
    13. Rammer, Christian, 2023. "Measuring process innovation output in firms: Cost reduction versus quality improvement," Technovation, Elsevier, vol. 124(C).
    14. Erika Raquel Badillo & Rosina Moreno, 2014. "“Are R&D collaborative agreements persistent at the firm level? Empirical evidence for the Spanish case”," IREA Working Papers 201410, University of Barcelona, Research Institute of Applied Economics, revised Mar 2014.
    15. Annalisa Caloffi & Marco Mariani & Fabrizia Mealli, 2013. "What kinds of R&D consortia enhance SMEs productivity? Evidence from a small-business innovation policy," "Marco Fanno" Working Papers 0172, Dipartimento di Scienze Economiche "Marco Fanno".
    16. Versaevel, Bruno & de Villemeur, Étienne, 2003. "Conflict and Cooperation on R&D Markets," IDEI Working Papers 191, Institut d'Économie Industrielle (IDEI), Toulouse.
    17. Hafezi, Maryam & Zhao, Xuan & Zolfagharinia, Hossein, 2023. "Together we stand? Co-opetition for the development of green products," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1417-1438.
    18. Dongdong Li & Chenxuan Shang, 2022. "When does environmental innovation crowd out process innovation? A dynamic analysis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2275-2283, September.
    19. Schmidt, Tobias, 2007. "Motives for Innovation Co-operation? Evidence from the Canadian Survey of Innovation," ZEW Discussion Papers 07-018, ZEW - Leibniz Centre for European Economic Research.
    20. Carboni, Oliviero A., 2013. "Heterogeneity in R&D collaboration: An empirical investigation," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 48-59.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:11:p:9004-:d:1162670. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.