Government regulatory policies for digital transformation in small and medium-sized manufacturing enterprises: an evolutionary game analysis

This study investigates the role of government regulatory policies in promoting digital transformation (DT) among small and medium-sized manufacturing enterprises (SMMEs) in China. Using a three-party evolutionary game model involving the government, third-party demonstration enterprises (TDEs), and SMMEs, the study analyzes the impact of different government strategies (regulation vs. non-regulation) and policy instruments (rewards and penalties) on DT adoption. The findings highlight the importance of considering the risk preferences of SMMEs when designing DT policies and suggest that government regulation may be more effective when SMMEs are risk-averse.

Jianhua Zhu, Julien S. Baker, Zhiting Song, Xiao-Guang Yue, Wenqi Li