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Modeling of Across-Chain Network Dynamic Competition for MNC in Industrial Cluster

Modeling of Across-Chain Network Dynamic Competition for MNC in Industrial Cluster

Chunling Liu, Jizi Li, Guo Li, Xiaogang Cao
Copyright: © 2011 |Volume: 3 |Issue: 4 |Pages: 20
ISSN: 1937-965X|EISSN: 1937-9668|EISBN13: 9781613505427|DOI: 10.4018/japuc.2011100105
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MLA

Liu, Chunling, et al. "Modeling of Across-Chain Network Dynamic Competition for MNC in Industrial Cluster." IJAPUC vol.3, no.4 2011: pp.30-49. http://doi.org/10.4018/japuc.2011100105

APA

Liu, C., Li, J., Li, G., & Cao, X. (2011). Modeling of Across-Chain Network Dynamic Competition for MNC in Industrial Cluster. International Journal of Advanced Pervasive and Ubiquitous Computing (IJAPUC), 3(4), 30-49. http://doi.org/10.4018/japuc.2011100105

Chicago

Liu, Chunling, et al. "Modeling of Across-Chain Network Dynamic Competition for MNC in Industrial Cluster," International Journal of Advanced Pervasive and Ubiquitous Computing (IJAPUC) 3, no.4: 30-49. http://doi.org/10.4018/japuc.2011100105

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Abstract

The huge market and perfect production system in China are attracting more multi-national companies’ interest to invest in China in the form of Foreign Direct Investment (FDI). Therefore, multi-national companies are willing to integrate and optimize global supply chain networks of their own, which enable them to reduce cost and improve market response. As a result, multi-national companies usually embed into local industrial clusters through financial and technological comparative merits to sharpen their competitive edge. This paper considers the across-chain network equilibrium problem involving process of competition and melting between this new global chain and an already existing local chain. The authors model the optimizing behavior of these two chains, derive the equilibrium conditions, and establish the variational inequality formulation, and solve it by using the modified algorithm. Finally, the authors illustrate the model through numerical example and discuss relationships among the price, quantity, technological progress, and satisfaction among two dynamic phases.

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