Restricted accessResearch articleFirst published online 2026-3
Strategy of Government,Industrial Internet Platform and SMEs in Regional Industrial Internet Ecosystem: Role of Government Subsidies and Value Co-creation
The regional industrial Internet ecosystem plays a crucial role in enhancing the regional economic competitiveness. This study examines the co-evolution among the government, industrial Internet platforms, and SMEs within China’s regional industrial Internet ecosystem. Employing a tripartite evolutionary game model, the research examines the functions of government subsidies and value co-creation. Findings indicate that government strategy is shaped by subsidies for platforms and SMEs, and the reputational benefits derived therefrom. The industrial Internet platform is primarily driven by government subsidies, synergistic benefits, and revenue-sharing allocation ratios with SMEs. SMEs’ strategy is contingent upon government subsidies, synergistic benefits, revenue-sharing allocation ratio, digital transformation costs, and potential risk loss. The study contributes to the theory on regional industrial Internet platform ecosystem by clarifying the role of government subsidies and value co-creation. It offers targeted implications to facilitate SMEs’ digital transformation and the sustainable development of regional industrial Internet ecosystem.
AnshariM., & AlmunawarM. N. (2022). Adopting open innovation for SMEs and industrial revolution 4.0. Journal of Science and Technology Policy Management, 13(2), 405–427. https://doi.org/10.1108/JSTPM-03-2020-0061
2.
ChenL., SunS., & ChenW. (2019). Evolutionary game analysis of enterprise behavior decision-making in the context of intelligent technological innovation network. Mathematics in Practice and Theory, 49(13), 284–289.
DuY., CaoL., & RenS. (2022). The evolution mechanism of the industrial Internet platform empowerment model from the perspective of network effects: A case study based on Humi. Journal of Management Studies, 15(6), 673–684.
5.
DuZ., & QuY. (2023). Research on information cooperation mechanism of cross-border e-commerce logistics alliance based on tripartite evolutionary game. Chinese Journal of Management Science, 31(4), 228–238.
6.
FriedmanD. (1991). Evolutionary games in economics. Econometrica, 59(3), 637–666. https://www.jstor.org/stable/2938222
7.
JudijantoL., SuwandanaI. M. A., & ParamitaC. C. P. (2024). Barriers to digital transformation in SMEs: Insights from a bibliometric analysis. West Science Business and Management, 2(2), 605–615. https://doi.org/10.58812/wsbm.v2i02.987
8.
LeeC., & HwangJ. (2018). The influence of giant platforms on content diversity. Technological Forecasting and Social Change, 136, 157–165. https://doi.org/10.1016/j.techfore.2016.11.029
9.
LiH., YangZ., JinC., & WangJ. (2022). How an industrial internet platform empowers the digital transformation of SMEs: Theoretical mechanism and business model. Journal of Knowledge Management, 27(1), 105–120. https://doi.org/10.1108/jkm-09-2022-0757
10.
LiX., ZhangL., & CaoJ. (2023). Research on the mechanism of sustainable business model innovation driven by the digital platform ecosystem. Journal of Engineering and Technology Management, 68, 101738. https://doi.org/10.1016/j.jengtecman.2023.101738
11.
LiuD., XiaoX., LiH., & WangW. (2015). Historical evolution and benefit–cost explanation of periodical fluctuation in coal mine safety supervision: An evolutionary game analysis framework. European Journal of Operational Research, 243(3), 974–984.
12.
LiuW., LongS., XieD., LiangY., & WangJ. (2021). How to govern the big data discriminatory pricing behavior in the platform service supply chain? An examination with a three-party evolutionary game model. International Journal of Production Economics, 231, 107910.
13.
LiuY., ZhuX., ZhangM., FuJ., YanC., WangY., & ZhaiY. (2024). Different roles, different strokes: Disseminating e-WOM in industrial Internet platforms through multi-actor value co-creation. Psychology & Marketing, 42(2), 359–373. https://doi.org/10.1002/mar.22128
14.
MarinaS., NadezhdaD., & ElenaV. (2021). Regional development: Organizational and economic mechanism in the context of the fourth industrial revolution. University Economic Bulletin, 144–155. https://doi.org/10.31470/2306-546X-2021-50-144-155.
15.
MbanefoC. C., & GrobbelaarS. S. (2024). Unveiling the core elements of platform ecosystem development: A systemic lens for value co-creation in small and medium enterprises and orchestrators. Management Review Quarterly, 75(2), 1575–1618. https://doi.org/10.1007/s11301-024-00416-1
16.
MoeufA., RobertP., SamirL., SimonT.-G., & BarbarayR. (2018). The industrial management of SMEs in the era of Industry 4.0. International Journal of Production Research, 56(3), 1118–1136. https://doi.org/10.1080/00207543.2017.1372647
17.
NairS., GaimM., & DimovD. (2022). Toward the emergence of entrepreneurial opportunities: Organizing early-phase new venture creation support systems. Academy of Management Review, 47(1), 162–183. https://doi.org/10.5465/amr.2019.0040
18.
PengX., LiY., WangS., & ZhaoC. (2025). Tripartite evolutionary game analysis of the industrial Internet ecosystem. Journal of Systems Science and Systems Engineering. https://doi.org/10.1007/s11518-025-5666-8
19.
QinW., ChenS., & PengM. (2020). Recent advances in industrial Internet: Insights and challenges. Digital Communications and Networks, 6(1), 1–13. https://doi.org/10.1016/j.dcan.2019.07.001
20.
RietveldJ., PloogJ. N., & NieborgD. B. (2020). The coevolution of platform dominance and governance strategies: Effects on complementor performance outcomes. Academy of Management Discoveries. https://doi.org/10.5465/amd.2019.0064
21.
ShahidH., KhuramS., PetriH., & Muhammad FarazM. (2025). Knowledge management and SMEs’ digital transformation: A systematic literature review and future research agenda. Journal of Innovation & Knowledge, 10(3), 100728. https://doi.org/10.1016/j.jik.2025.100728
22.
StermanJ. D. (2000). Business dynamics. McGraw-Hill.
23.
SuH., LiL., TianS., CaoZ., & MaQ. (2025). Innovation mechanism of AI empowering manufacturing enterprises: Case study of an industrial Internet platform. Information Technology and Management, 26(3), 421–439.
24.
WangC., SongL., & LiS. (2018). The industrial Internet platform: Trend and challenges. Chinese Journal of Engineering Science, 20(2), 15–19. https://doi.org/10.15302/j-sscae-2018.02.003
25.
WangS., GaoM., & ZhangH. (2024). Strengthening SMEs’ competitiveness and performance via industrial Internet: Technological, organizational, and environmental pathways. Humanities and Social Sciences Communications, 11(1), 1–15. https://doi.org/10.1057/s41599-024-03903-8.
26.
XieK., XiaoJ., LaiJ., LiX., & WuJ. (2017). The “regulation dilemma”: Signal skew and institutional arrangement in food safety. Journal of Management Science in China, 20(2), 17.
27.
XuH., & WangJ. (2023). Evolutionary game of digital transformation in manufacturing industry considering government subsidies. Finance and Economy, 1, 51–60.
28.
YangC. (2025). Digital platform capability, value co-creation, and SME digital transformation performance: A moderated mediation model. Journal of Innovation and Development, 10(1), 33–42. https://doi.org/10.54097/rryvnp18
29.
YuF., DuH., LiX., & CaoJ. (2023). Enterprise digitalization, business strategy and subsidy allocation: Evidence of the signaling effect. Technological Forecasting and Social Change, 190, 122472. https://doi.org/10.1016/j.techfore.2023.122472
30.
YunJ., LiuZ., & ZhaoX. (2021). Introduction: Ambidextrous open innovation in the 4th industrial revolution. Science, Technology and Society, 26(2), 183–200. https://doi.org/ 10.1177/09717218211006969
31.
YunJ., ZhaoX., & LiuZ. (2024). Regulation architecture of open innovation under digital transformation: Case study on telemedicine and for-profit hospital. Journal of Open Innovation: Technology, Market, and Complexity, 10(1), 100252. https://doi.org/10.1016/j.joitmc.2024.100252
32.
ZhouJ., WangG., & DiaoZ. (2024). Enabling digital transformation of traditional enterprises through industrial Internet platforms: A study from an ecosystem perspective. Engineering, Construction and Architectural Management. https://doi.org/10.1108/ecam-01-2024-0083
33.
ZhuW., HuX., WuY., & ZhangT. (2024). Relationship between SMEs’ ESG performance and value creation in China: The moderating role of government subsidies. Journal of the Asian Pacific Economy, 30(2), 551–574. https://doi.org/10.1080/13547860.2024.2305307
