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Network evolution of diffusion in enterprise digitalization and intellectualization transformation: A

Huan Hu¹, Mingyu Zhao¹, Xiaoyi Zhang¹

¹School of Economics & Management, Northwest University, Xi'an, China.

|December 20, 2023

Summary

This study optimizes enterprise digitalization and intellectualization (EDI) diffusion strategies in China by addressing market uncertainty. Network game models reveal that optimized strategies and specific government subsidies significantly enhance EDI adoption and revenue.

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Area of Science:

Economics
Systems Science
Management Science

Background:

Enterprise digitalization and intellectualization (EDI) is vital for China's modernization.
Market and business decision uncertainty impedes EDI diffusion.
Effective strategies are needed to overcome these diffusion barriers.

Purpose of the Study:

To address uncertainty in EDI diffusion by examining market demand and government policy coordination.
To develop and optimize network diffusion strategies for enterprises.
To analyze the impact of government subsidies and pricing premiums on EDI adoption.

Main Methods:

Utilized complex network game theory to establish a technology-organization-environment framework.
Constructed a network game model to analyze and optimize diffusion strategy updating rules.
Examined the influence of government subsidies and various premiums on EDI diffusion.

Main Results:

Optimized network node strategy updating rules led to increased market diffusion and average revenue for EDI.
Product pricing premiums and inverted U-shaped government subsidies significantly impacted EDI diffusion and revenue.
Other premium effects were found to be non-significant in influencing EDI adoption and revenue.

Conclusions:

Optimized network strategies enhance EDI diffusion and enterprise revenue under market uncertainty.
Government policies, specifically inverted U-shaped subsidies and strategic pricing, are crucial for promoting EDI.
Findings offer recommendations for policy enhancement and enterprise pricing strategies to boost EDI efficiency and returns.