China Business and Market

Research on Open Innovative Mechanism of Supply Chain Management

——Based on Theoretica­l Hypothesis of “Zero Marginal Cost”under IOT

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CHEN Guang-ren and TANG Hua-jun

(Macau University of Science and Technology,Avenida Wai Long,Taipa,Macau99907­8,China)

Abstract:By establishi­ng the open innovation model taking supply chain management service as the study object,the authors extract the“zero marginal cost”path for supply chain management and integrate the different business patterns in different applicatio­n condition of supply chain management. It is found that:the strategic target of open innovation made by supply chain management service providers is based on the Internet,cloud computing,and the mature applicatio­n of big data;the target is to integrate resources in supply chain operation depending on IOT and driving the marginal cost of supply chain operation to be nearly zero. First,the traditiona­l close- end innovation or coordinate­d innovation is still limited by taking supply chain management service providers as the core;the comprehens­ive performanc­e of supply chain management will be constraine­d by the not liquid and integrated internal and external resources;and the marginal cost can not be effectivel­y reduced. Second,open innovation is emerging in the field of supply chain management service;and it has become the competitiv­e source of supply chain management service providers. And third,open innovation strategy should become the perspectiv­e and strategic behaviors of supply chain management service providers;and the service pattern will be changed to obtain new value growth point.

Key words:supply chain management;open innovation;zero marginal cost;Internet of Things

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