Strategic evolution in manufacturer–supplier collaboration: A game‐theoretic exploration of product customization dynamics

Abstract Amid rising demand for personalized products, manufacturers are forming collaborative bonds with suppliers, driven by revenue and cost‐sharing arrangements. This study presents an evolutionary game model examining collaboration nuances and analyzes the impact of customization, revenue, and cost‐sharing ratios. Findings reveal customization's bidirectional effect on collaboration and a distinctive relationship between revenue‐sharing and collaboration probability. Increased cost‐sharing ratios deter manufacturers from collaboration, favoring revenue‐sharing mechanisms to incentivize supplier participation. The study highlights revenue‐sharing's efficacy in promoting collaboration between manufacturers and suppliers to enhance product competitiveness.