Abstract:     In the era of network economy, competition among enterprises gradually turns into comprehensive competition among supply chains, so the focus of supply chain management is how to maintain and improve the competitive advantage of supply chain. From the perspective of representation, the competitive advantage of supply chain mainly depends on the operation efficiency of supply chain, and the essence of competitive advantage is derived from supply chain value system. Constantly improving the difference and creativity of the supply chain value system has become the key to the long-term survival and stable development of the supply chain. Moreover, the difference of supply chain value system is closely related to the value creation of enterprises and consumers. In the process of innovation practice, some enterprises have realized that if they can create value in company with consumers, they will win more sustainable advantages for enterprises and their supply chains. Therefore, enterprises begin to introduce consumers to participate in innovation, and the status of consumers has undergone a major change accordingly. They have more voice and initiative than ever before. It thus has become an important means for some enterprises to improve their innovation efficiency and gain competitive advantage by treating consumers as partners and engaging them in the process of innovation. However, affected by some relevant factors, this innovation mode may have negative effects on enterprises. It has attracted people′s attention to see whether this mode can be adopted in order to enhance the value of the enterprise and the supply chain. So far, the existing literatures generally think that consumer participation in innovation is beneficial to the improvement of enterprises benefit, but it does not clarify its specific impact on the value creation of supply chain. To this end, based on the relevant literatures on the supply chain value and consumer participation in innovation, this paper innovatively incorporates consumer participation in innovation into the supply chain value creation system, and researches the specific impact of consumer participation in innovation on supply chain value creation. In order to better describe the actual process of consumers participating in innovation, in terms of model setting, this paper no longer regards consumers as a homogeneous unity, but as heterogeneous individuals. These heterogeneous individuals are divided into two groups: participating and non-participating in innovation. Then, based on the basic utility of consumers, the proportion of consumer participation, the degree of participation, and the payment cost of enterprises are considered by applying bi-level programming to construct the supply chain value creation model of consumer participation in innovation. Finally, we obtain the optimal supply chain value and the value of each participant in supply chain by this model. Comparison these optimal values with relevant optimum value in the case of manufacturer′s individual innovation, we analyze the effects of consumer participation in innovation in the creation of supply chain value, and focus on the impact of the proportion of consumer participation and degree of consumer participation on supply chain value system. At the same time, in order to ensure the integrity of the research, the possible decision-making behavior of manufacturer and the manufacturer value are also analyzed under different payment cost. The main results are as follows.First of all, consumer participation in manufacturer′s innovation has a positive impact on the creation of supply chain value, supplier value and consumer value. Meanwhile, these values change in the same direction with the degree and proportion of consumer participation. That is to say, as the degree and proportion of consumer participation increase, the value of supply chain, supplier and consumer increase. This shows that manufacturers introducing consumer participation in innovation can be another way of supply chain value creation. In order to create more supply chain value, it is necessary for enterprises to change the innovative thinking, open the innovation boundary, and establish an open and win-win concept of innovation. By integrating external consumer innovation resources, innovation efficiency is enhanced, consumer demand is met, and market share is expanded.Secondly, influence by factors such as the degree of consumer participation and the payment cost of manufacturer, consumer participation in innovation is not always conducive to manufacturer value creation. To be specific, if the payment cost of manufacturer is low and the degree of consumer participation is high, and the manufacturer benefits more than his independent innovation, then he will choose to introduce consumers to participate in innovation. If the payment cost of manufacturer is extremely high and the degree of consumer participation is low, which results in negative earnings, then the manufacturer will choose independent innovation. When the payment cost of manufacturer is low, and his income is lower than that of independent innovation, but makes ends meet. In order to improve the level of product innovation, competitive advantage and pursue long-term interests, some manufacturers will also choose to introduce consumers to participate in innovation. This explains why only some enterprises choose to introduce consumers to participate in innovation and clarifies the importance of making reasonable compensation when enterprises cooperate and innovate with consumers.Finally, when consumers participate in innovation, manufacturer value change in the same direction with the degree of consumer participation. That means that the increase in consumer participation is conducive to manufacturer value creation. However, due to the impact of related factors such as the payment cost, only when the payment cost meets certain conditions, the manufacturer value will change in the same direction with the scale of consumer participation. In other words, the increase in the scale of consumer participation is beneficial to the manufacturer value creation. When the payment cost of the manufacturer is extremely high, the created value is inversely related to the ratio of consumers participating in innovation. That is to say, the increase in the scale of consumer participation is not always conducive to the value creation of manufacturers. This shows that enterprises should pay more attention to guide consumers to participate deeply and increase their input while making a reasonable payment, rather than blindly expanding the number of participants. Otherwise, it will increase the payment cost and reduce the value of enterprises.

Key words: consumer participation, supply chain value, technological innovation, value creation, bi-level programming