Research Of Influence Of Horizontal Cooperation Between Suppliers On Paticipants Of Innovation Project

With the increasing fierce competition and the high speed ofreplacement products, more and more companies cooperate withmembers of supply chain to develop new products in order to shorten theresearch time and improve the core competitiveness. There exists notonly the vertical cooperation but also horizontal cooperation in the supplychain cooperation.The main content of this paper is about two echelon supply chain,which includes a focal company and several suppliers, focusing on theeffects and mechanism of horizontal cooperation between the suppliers.This paper, using the Game theory, does research about the process ofcooperation. Numerical simulation compares and analyzes the effects ofthe spillover coefficients on the costs and profits of both sides. The resultsshow that hybrid cooperation can reduce the costs and increase the profitsof both sides. But the degree of impact is different. Based on CobbDouglas production function, the relationship between reduction of costsand investment shows that reduction of costs can stimulate moreinvestment. Also, we can explain the motivation of participants by spillover effects in network qualitatively.