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Innovation Search Scope, Technological Complexity, and Environmental Turbulence: A N-K Simulation

Author

Listed:
  • Fei Li

    (College of Public Administration, Zhejiang University, Hangzhou 310058, China)

  • Jin Chen

    (School of Economics and Management, Tsinghua University, Beijing 100084, China)

  • Ying Ying

    (School of Business Administration, Zhejiang University of Finance and Economics, Hangzhou 310018, China)

Abstract

This paper discusses the effects of different innovation search scopes on the performance of the N-K fitness landscape model with a focus on its contextual factors of technology complexity and environmental turbulence. Results show that the medium-level search scope has a significantly better outcome than the low-level search scope, especially when the technological complexity is high, while the high-level search scope would not provide a statistically significant advantage. After introducing the turbulent range and rapidity into the N-K model, we extend the model into a dynamic one to simulate better the real turbulent business world. The results of the simulation in dynamic landscapes show that the higher degree of environmental turbulence causes a higher search scope to become more valuable.

Suggested Citation

  • Fei Li & Jin Chen & Ying Ying, 2019. "Innovation Search Scope, Technological Complexity, and Environmental Turbulence: A N-K Simulation," Sustainability, MDPI, vol. 11(16), pages 1-12, August.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:16:p:4279-:d:255689
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    References listed on IDEAS

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