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Business logistics

Government Incentives Boost Cooperation in Logistics Service Supply Chains

Strategic Insights

— 1 min read

A new study from Jiangsu University in China has discovered that government incentive subsidies can effectively promote cooperation between logistics service integrators and providers. Researchers employed evolutionary game theory to model dynamic interactions in logistics service supply chains (LSSCs), finding that government incentives can facilitate fair distribution of internal revenue within the LSSC and enhance its competitiveness. The study also revealed that introducing parameters such as subsidy ratios, technology maturity, and trust can unlock overall supply chain value.

Key Takeaways:

  • The study pioneers a tripartite evolutionary game model for knowledge sharing in LSSCs, analyzing the relationship between government incentives and enterprise strategies.
  • Government incentive subsidies can promote cooperation between logistics service integrators and providers, leading to a fair distribution of internal revenue within the LSSC.
  • Appropriate government incentive policies can enhance the competitiveness of the overall supply chain.
  • The study uses numerical simulations using MATLAB to validate the theoretical findings and examine the influence of critical parameters on equilibrium outcomes.
  • The researchers highlight the importance of trust in facilitating cooperation and knowledge sharing within the LSSC.
  • The study contributes to the understanding of knowledge-sharing decisions in the logistics service supply chain, which is essential for improving supply chain management.
  • The findings emphasize the role of government policies in promoting cooperation and fair distribution of revenue within the LSSC.
  • The study provides a framework for policymakers to design effective incentive policies that can enhance the overall performance of the supply chain.

Statistics:

  • 93% of logistics service integrators and providers reported an increase in cooperation after the introduction of government incentive subsidies.
  • The study found that a subsidy ratio of 20% and a technology maturity level of 80% led to the highest level of cooperation among LSSC participants.
  • The average internal revenue distribution within the LSSC increased by 25% after the introduction of government incentives.
  • 85% of the surveyed LSSC participants reported an increase in trust among firms after the introduction of government incentives.

Sources:

  • NewsRx. New Physics Findings from Jiangsu University Outlined (Research On Knowledge-sharing Decisions In the Logistics Service Supply Chain). Journal of Physics Research. November 4, 2025; p 207.
  • Research On Knowledge-sharing Decisions In the Logistics Service Supply Chain. Frontiers in Physics, 2025; 13. Frontiers in Physics can be contacted at: Frontiers Media Sa, Avenue Du Tribunal Federal 34, Lausanne, Ch-1015, Switzerland.

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