Exploring Knowledge Sharing Strategies in Competing Supply Chains: A Behavioral Economics Approach to Incentivized Knowledge Dissemination

This study examines knowledge-sharing strategies within two competing supply chains, each consisting of one supplier and one manufacturer. Manufacturers possess proprietary information on product innovations and face strategic choices regarding knowledge dissemination: sharing horizontally with competitors, vertically with suppliers, or both. Using a behavioral economics framework, a Bertrand competition-based model is developed to evaluate three approaches: complete knowledge sharing, partial (incomplete) knowledge sharing, and non-knowledge sharing. The model incorporates payment incentives for purchasers, challenging conventional norms, and reveals critical insights. Non-knowledge sharing policies primarily benefit manufacturers, often to the detriment of other supply chain members. In contrast, partial knowledge sharing results in more balanced outcomes, fostering mutual benefits across the chain. Furthermore, the findings demonstrate that incentivizing knowledge dissemination can significantly enhance overall supply chain profitability. By rewarding purchasers for sharing knowledge, this strategy increases the financial gains for both purchasers and producers, making it a more advantageous policy compared to incomplete or non-knowledge sharing. This research addresses notable gaps in the literature by advancing beyond the binary focus of previous studies on either complete or non-sharing. Instead, it evaluates alternative approaches, such as incentivized and partial sharing mechanisms. A subscription-based model is proposed, allowing purchasers to access comprehensive knowledge in exchange for payment. This innovative approach broadens the scope of knowledge-sharing strategies and underscores the importance of incentivized dissemination as a means to optimize supply chain performance and foster collaborative profitability.