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The Incentive Mechanism of Knowledge Sharing in Cross-Border Business Models Based on Digital Technologies

Author

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  • Yan Wang

    (School of Business, Honghe University, Mengzi 661199, China)

  • Lifan Yang

    (Faculty of Management and Economics, Kunming University of Science and Technology, Kunming 650031, China)

  • Enzo Russo

    (Department of Economics, University of Campania Luigi Vanvitelli, 80100 Naples, Italy)

  • Domenico Graziano

    (Department of Economics, University of Campania Luigi Vanvitelli, 80100 Naples, Italy)

Abstract

This paper aims to solve the time-constrained problems of knowledge sharing caused by geographical distance and cultural differences in cross-border business models by proposing a novel knowledge sharing model based on principal–agent theory. Given that digital technologies (DTs) can solve the information asymmetry issue, this paper analyses and compares the contract parameters given by the principal, the efforts of the agent, and the changes in the expected profits of both parties before and after the application of DTs and therefore discusses the influence of various relevant factors in incentive contracts; the relationship between the expected profit of both parties and the various relevant factors is analyzed through numerical simulations. The results show that, in cross-border business models considering the time value of knowledge, the principal is affected not only by “information rent” and “channel loss” but also by the “time cost”. The application of DTs can effectively reduce all three of these costs. More importantly, the principal’s incentive coefficient and the agent’s effort are related to this time constraint and the application of DTs.

Suggested Citation

  • Yan Wang & Lifan Yang & Enzo Russo & Domenico Graziano, 2021. "The Incentive Mechanism of Knowledge Sharing in Cross-Border Business Models Based on Digital Technologies," Sustainability, MDPI, vol. 13(22), pages 1-33, November.
  • Handle: RePEc:gam:jsusta:v:13:y:2021:i:22:p:12821-:d:683705
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    1. Yunjuan Liang & Xin Liang & Hua Wei, 2023. "Sustainable Quality-Incentive Contract Design of Public Technology Innovation Procurement under Asymmetry Information," Sustainability, MDPI, vol. 15(11), pages 1-22, May.

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