How Do Vertical Alliances Form in Agricultural Supply Chains?—An Evolutionary Game Analysis Based on Chinese Experience

Vertical alliances within agricultural supply chains serve as critical institutional vehicles for deepening triple-sector integration (primary–secondary–tertiary) in rural economies, driving agricultural modernization, and advancing rural revitalization. However, sustaining alliance stability constitutes a complex dynamic process wherein inadequate stakeholder engagement and collaborative failures frequently precipitate alliance instability or even dissolution. Existing scholarship exhibits limited systematic examination of the micro-mechanisms and regulatory pathways through which multi-agent strategic interactions affect alliance stability from a dynamic evolutionary perspective. To address this gap, this research focuses on China’s core agricultural innovation vehicle—the Agricultural Industrialization Consortium—and examines the tripartite structure of “Leading Enterprise–Family Farm–Integrated Agricultural Service Providers.” We construct a tripartite evolutionary game model to systematically analyze (1) the influence mechanisms governing cooperative strategy selection, and (2) the regulatory effects of key parameters on consortium stability through strategic stability analysis and multi-scenario simulations. Our key findings are as follows: Four strategic equilibrium scenarios emerge under specific conditions, with synergistic parameter optimization constituting the fundamental driver of alliance stability. Specific mechanisms are as follows: (i) compensation mechanisms effectively mobilize leading enterprises under widespread defection, though excessive penalties erode reciprocity principles; (ii) strategic reductions in benefit sharing ratios coupled with moderate factor value-added coefficients are critical for reversing leading enterprises’ defection; (iii) dual adjustment of cost sharing and benefit sharing coefficients is necessary to resolve bilateral defection dilemmas; and (iv) synchronized optimization of compensation, cost sharing, benefit sharing, and value-added parameters represents the sole pathway to achieving stable (1,1,1) full-cooperation equilibrium. Critical barriers include threshold effects in benefit sharing ratios (defection triggers when shared benefits > cooperative benefits) and the inherent trade-off between penalty intensity and alliance resilience. Consequently, policy interventions must balance immediate constraints with long-term cooperative sustainability. This study extends the application of evolutionary game theory in agricultural organization research by revealing the micro-level mechanisms underlying alliance stability and providing a novel analytical framework for addressing the ‘strategy–equilibrium’ paradox in multi-agent cooperation. Our work not only offers new theoretical perspectives and methodological support for understanding the dynamic stability mechanisms of agricultural vertical alliances but also establishes a substantive theoretical foundation for optimizing consortium governance and promoting long-term alliance stability.

Authors

Institutions

Publication Details

Journal
Sustainability
Published
2025-09-04
DOI
https://doi.org/10.3390/su17177975
Primary Topic
Agricultural Innovations and Practices
Type
article
Field-Weighted Citation Impact
0.00

Funders

Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

How Do Vertical Alliances Form in Agricultural Supply Chains?—An Evolutionary Game Analysis Based on Chinese Experience

Hongwei Fang, Weizhong Liu, Ranran Hu
Sustainability
Agricultural Innovations and Practices
article

How Do Vertical Alliances Form in Agricultural Supply Chains?—An Evolutionary Game Analysis Based on Chinese Experience

Hongwei Fang, Weizhong Liu, Ranran Hu
article en

Abstract

Vertical alliances within agricultural supply chains serve as critical institutional vehicles for deepening triple-sector integration (primary–secondary–tertiary) in rural economies, driving agricultural modernization, and advancing rural revitalization. However, sustaining alliance stability constitutes a complex dynamic process wherein inadequate stakeholder engagement and collaborative failures frequently precipitate alliance instability or even dissolution. Existing scholarship exhibits limited systematic examination of the micro-mechanisms and regulatory pathways through which multi-agent strategic interactions affect alliance stability from a dynamic evolutionary perspective. To address this gap, this research focuses on China’s core agricultural innovation vehicle—the Agricultural Industrialization Consortium—and examines the tripartite structure of “Leading Enterprise–Family Farm–Integrated Agricultural Service Providers.” We construct a tripartite evolutionary game model to systematically analyze (1) the influence mechanisms governing cooperative strategy selection, and (2) the regulatory effects of key parameters on consortium stability through strategic stability analysis and multi-scenario simulations. Our key findings are as follows: Four strategic equilibrium scenarios emerge under specific conditions, with synergistic parameter optimization constituting the fundamental driver of alliance stability. Specific mechanisms are as follows: (i) compensation mechanisms effectively mobilize leading enterprises under widespread defection, though excessive penalties erode reciprocity principles; (ii) strategic reductions in benefit sharing ratios coupled with moderate factor value-added coefficients are critical for reversing leading enterprises’ defection; (iii) dual adjustment of cost sharing and benefit sharing coefficients is necessary to resolve bilateral defection dilemmas; and (iv) synchronized optimization of compensation, cost sharing, benefit sharing, and value-added parameters represents the sole pathway to achieving stable (1,1,1) full-cooperation equilibrium. Critical barriers include threshold effects in benefit sharing ratios (defection triggers when shared benefits > cooperative benefits) and the inherent trade-off between penalty intensity and alliance resilience. Consequently, policy interventions must balance immediate constraints with long-term cooperative sustainability. This study extends the application of evolutionary game theory in agricultural organization research by revealing the micro-level mechanisms underlying alliance stability and providing a novel analytical framework for addressing the ‘strategy–equilibrium’ paradox in multi-agent cooperation. Our work not only offers new theoretical perspectives and methodological support for understanding the dynamic stability mechanisms of agricultural vertical alliances but also establishes a substantive theoretical foundation for optimizing consortium governance and promoting long-term alliance stability.

SustainabilityVol. 17(17)
Xinjiang Agricultural University (CN)
Xinjiang Uygur Autonomous Region Department of Education, National Social Science Fund of China
Openalex Percentile: Top 64%
Agricultural Innovations and Practices
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.