Identifying the role of contracts in driving value cocreation between the internet of things platform and smart product manufacturer

IF 11.1 1区管理学 Q1 ENGINEERING, INDUSTRIAL

Technovation Pub Date : 2025-02-01 DOI:10.1016/j.technovation.2024.103157

Xiufeng Li , Lei Li , Shaojun Ma

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引用次数: 0

Abstract

In recent years, various digital Business-to-Business (B2B) platforms have been accelerating the promotion of digital transformation in manufacturing. Consider a supply chain setting where an online B2B platform offers Internet of Things (IoT) service and selling channels to a manufacturer, this paper examines digital innovation investments and service pricing decisions under two common contracts: sell-on and sell-to contracts. Firstly, we have identified the impact of demand spillover from IoT platform services and IoT technology on manufacturer innovation and product line decisions. We found that under significant demand spillover, the manufacturer will exclusively produce smart products and discontinue the production of traditional products. Secondly, we find that under sell-on contracts, the innovation investments of the platform and manufacturer are always substitutable as the platform commission rate increases. Also, both the manufacturer and the IoT platform tend to increase innovation provision when using sell-on contracts compared to sell-to contracts. Finally, our results illustrate that the profitability of the IoT platform and the manufacturer is contingent upon the type of contract in place, with the IoT platform being more profitable under sell-to contracts when demand spillovers are small. Our research findings offer a valuable reference point for developing IoT platforms and insights into innovation and pricing decisions for smart device manufacturers in the digital transformation of manufacturing.

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来源期刊

Technovation 管理科学-工程：工业

CiteScore

15.10

自引率

11.20%

发文量

208

审稿时长

91 days

期刊介绍： The interdisciplinary journal Technovation covers various aspects of technological innovation, exploring processes, products, and social impacts. It examines innovation in both process and product realms, including social innovations like regulatory frameworks and non-economic benefits. Topics range from emerging trends and capital for development to managing technology-intensive ventures and innovation in organizations of different sizes. It also discusses organizational structures, investment strategies for science and technology enterprises, and the roles of technological innovators. Additionally, it addresses technology transfer between developing countries and innovation across enterprise, political, and economic systems.