Abstract
This study constructs a two-period supply chain model consisting of two suppliers and one retailer using a revenue-sharing contract. Considering random investment cost, the impact of supplier competition on innovation strategy is analyzed and the equilibrium strategy of suppliers’ technology innovation game as well as the optimal revenue-sharing contract is derived. It is found that technology innovation degree influences supplier competition, technology innovation strategy and the form of the optimal revenue-sharing contract. Supplier innovation can improve retailer’s profit, but it may reduce supplier’s profit as well as the supply chain efficiency due to the uncertainty of investment cost and supplier competition.
Key words: Technology innovation, revenue-sharing contract, supply chain efficiency, game analysis.
