IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v6y2014i8p4772-4794d38627.html
   My bibliography  Save this article

Game Analysis of Determinants of Stability of Semiconductor Modular Production Networks

Author

Listed:
  • Wei He

    (School of Business Administration, Jiangxi University of Finance and Economics, No.168, East Shuanggang Road, Changbei, Nanchang 330013,China)

  • Si-Hua Chen

    (Institute of Information Resource Management, School of Information Technology, Jiangxi Key Laboratory of Data and Knowledge Engineering, Jiangxi University of Finance and Economics, No.168, East Shuanggang Road, Changbei, Nanchang 330013, China)

Abstract

In today’s rapidly changing environment, semiconductor manufacturers compete more in the area of modular production networks. However, the instability of semiconductor modular production networks can to a large extent lead to the failure of these networks. The aim of this paper is to discuss the significance and explore the maintenance of the stability of these semiconductor modular production networks. Firstly, this paper qualitatively and quantitatively defines the stability of semiconductor modular production networks. Based on this, by establishing game models, this paper analyzes the influence mechanism of the main factors: external market fluctuation, the internal benefit allocation mechanism, and opportunism, which can jeopardize the stability of these networks. We find that: the greater the benefits a member enterprise derives from the common benefits, the more likely it is the member enterprise will not exit the modular production network; the adaptive ability of the networks to the external environment is closely related to the stability of the modular production networks; the supervision and punishment in networks can be substituted for each other and the level of supervision, punishment and trust can exert great influence on the stability of semiconductor modular production networks. Lastly, we propose some specific suggestions.

Suggested Citation

  • Wei He & Si-Hua Chen, 2014. "Game Analysis of Determinants of Stability of Semiconductor Modular Production Networks," Sustainability, MDPI, vol. 6(8), pages 1-23, July.
  • Handle: RePEc:gam:jsusta:v:6:y:2014:i:8:p:4772-4794:d:38627
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/6/8/4772/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/6/8/4772/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Langlois, Richard N., 2002. "Modularity in technology and organization," Journal of Economic Behavior & Organization, Elsevier, vol. 49(1), pages 19-37, September.
    2. Timothy J. Sturgeon, 2002. "Modular production networks: a new American model of industrial organization," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 451-496, June.
    3. Demange,Gabrielle & Wooders,Myrna (ed.), 2005. "Group Formation in Economics," Cambridge Books, Cambridge University Press, number 9780521842716, January.
    4. Ahmed S. Khan, 2012. "Understanding Global Supply Chains and Seafood Markets for the Rebuilding Prospects of Northern Gulf Cod Fisheries," Sustainability, MDPI, vol. 4(11), pages 1-24, November.
    5. Foley, Michael W. & Edwards, Bob, 1999. "Is It Time to Disinvest in Social Capital?," Journal of Public Policy, Cambridge University Press, vol. 19(2), pages 141-173, May.
    6. Tailan Chi, 1994. "Trading in strategic resources: Necessary conditions, transaction cost problems, and choice of exchange structure," Strategic Management Journal, Wiley Blackwell, vol. 15(4), pages 271-290, May.
    7. Juliana Lutz & Judith Schachinger, 2013. "Do Local Food Networks Foster Socio-Ecological Transitions towards Food Sovereignty? Learning from Real Place Experiences," Sustainability, MDPI, vol. 5(11), pages 1-19, November.
    8. Langlois, Richard N. & Robertson, Paul L., 1992. "Networks and innovation in a modular system: Lessons from the microcomputer and stereo component industries," Research Policy, Elsevier, vol. 21(4), pages 297-313, August.
    9. Romy Morana & Stefan Seuring, 2011. "A Three Level Framework for Closed-Loop Supply Chain Management—Linking Society, Chain and Actor Level," Sustainability, MDPI, vol. 3(4), pages 1-14, April.
    10. Jessica Haynes & Frederick Cubbage & Evan Mercer & Erin Sills, 2012. "The Search for Value and Meaning in the Cocoa Supply Chain in Costa Rica," Sustainability, MDPI, vol. 4(7), pages 1-22, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fucai Lu & Wei He & Yang Cheng & Sihua Chen & Liang Ning & Xiaoan Mei, 2015. "Exploring the Upgrading of Chinese Automotive Manufacturing Industry in the Global Value Chain: An Empirical Study Based on Panel Data," Sustainability, MDPI, vol. 7(5), pages 1-23, May.
    2. Si-Hua Chen, 2016. "The Influencing Factors of Enterprise Sustainable Innovation: An Empirical Study," Sustainability, MDPI, vol. 8(5), pages 1-17, April.
    3. Si-hua Chen, 2017. "An Evolutionary Game Study of an Ecological Industry Chain Based on Multi-Agent Simulation: A Case Study of the Poyang Lake Eco-Economic Zone," Sustainability, MDPI, vol. 9(7), pages 1-27, July.
    4. Si-hua Chen, 2017. "An Evolutionary Game Model of Knowledge Workers’ Counterproductive Work Behaviors Based on Preferences," Complexity, Hindawi, vol. 2017, pages 1-11, January.
    5. Sihua Chen & Qin He & Hua Xiao, 2022. "A study on cross-border e-commerce partner selection in B2B mode," Electronic Commerce Research, Springer, vol. 22(2), pages 1-21, June.

    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. Vincent Frigant & Damien Talbot, 2003. "Convergence et diversité du passage à la production modulaire dans l'aéronautique et l'automobile en Europe," Post-Print hal-00246171, HAL.
    2. Gawer, Annabelle, 2014. "Bridging differing perspectives on technological platforms: Toward an integrative framework," Research Policy, Elsevier, vol. 43(7), pages 1239-1249.
    3. Vincent FRIGANT (E3i, IFReDE-GRES), 2005. "Proximities in Modular Production: an Analysis of the Globalization of the Automotive Fisrt Tier Suppliers (In French)," Cahiers du GRES (2002-2009) 2005-11, Groupement de Recherches Economiques et Sociales.
    4. Vincent Frigant & Damien Talbot, 2005. "Technological Determinism and Modularity: Lessons from a Comparison between Aircraft and Auto Industries in Europe," Industry and Innovation, Taylor & Francis Journals, vol. 12(3), pages 337-355.
    5. Johann Peter & Benedikt Alexander, 2023. "Exploring the structure of internal combustion engine and battery electric vehicles: implications for the architecture of the automotive industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 32(1), pages 129-154.
    6. Frigant, 2004. "Modularity: the foundations of an architect firm? (In French)," Industrial Organization 0405002, University Library of Munich, Germany.
    7. Stefano Brusoni & Keith Pavitt, 2003. "Problem solving and the co-ordination of innovative activities," SPRU Working Paper Series 93, SPRU - Science Policy Research Unit, University of Sussex Business School.
    8. Leonardo Bargigli, 2005. "The limits of modularity in innovation and production," KITeS Working Papers 176, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Sep 2005.
    9. Andreas Reinstaller, 2011. "The Modularity of Technology and Organisations. Implications for the Theory of the Firm," WIFO Working Papers 398, WIFO.
    10. Stefano Brusoni & Joachim Henkel & Michael G Jacobides & Samina Karim & Alan Mac & Phanish Puranam & Melissa Schilling, 2023. "The power of modularity today: 20 years of “Design Rules”," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 32(1), pages 1-10.
    11. Vincent Frigant, 2005. "Vanishing hand versus Systems integrators - Une revue de la littérature sur l'impact organisationnel de la modularité," Revue d'Économie Industrielle, Programme National Persée, vol. 109(1), pages 29-52.
    12. Vincent Frigant, 2007. "L'impact de la production modulaire sur l'approfondissement de la Division Internationale des Processus Productifs (DIPP)," Revue d'économie politique, Dalloz, vol. 117(6), pages 937-961.
    13. Leonardo Bargigli, 2005. "An evolutionary model for the dynamics of vertical integration and network-based production," Industrial Organization 0509002, University Library of Munich, Germany.
    14. Andreas Reinstaller, 2012. "Modularity and its Implications for the Theory of the Firm," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 32, Edward Elgar Publishing.
    15. Davide Consoli & Pier Paolo Patrucco, 2011. "Complexity and the Coordination of Technological Knowledge: The Case of Innovation Platforms," Chapters, in: Handbook on the Economic Complexity of Technological Change, chapter 8 Edward Elgar Publishing.
    16. Vincent FRIGANT, 2009. "Is the automotive supply chain compatible with Corporate Social Responsible practices? (In French)," Cahiers du GREThA (2007-2019) 2009-08, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    17. Giovanna Devetag & Enrico Zaninotto, 2001. "The imperfect hiding: Some introductory concepts and preliminary issues on modularity," ROCK Working Papers 010, Department of Computer and Management Sciences, University of Trento, Italy, revised 13 Jun 2008.
    18. Vincent FRIGANT & Stéphanie PERES & Stéphane VIROL, 2012. "How do SMEs to rise at the top of the supply chain? An econometric exploration of the French auto industry (In French)," Cahiers du GREThA (2007-2019) 2012-16, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    19. Mazzanti, Massimiliano & Mancinelli, Susanna, 2007. "SME Performance, Innovation and Networking Evidence on Complementarities for a Local Economic System," Knowledge, Technology, Human Capital Working Papers 9554, Fondazione Eni Enrico Mattei (FEEM).
    20. Stefano Brusoni & Luigi Marengo & Andrea Prencipe & Marco Valente, 2004. "The Value and Costs of Modularity: A Cognitive Perspective," SPRU Working Paper Series 123, SPRU - Science Policy Research Unit, University of Sussex Business School.

    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:6:y:2014:i:8:p:4772-4794:d:38627. 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.