Improving entrepreneurial knowledge and business innovations by simulation-based strategic decision support system

Abstract

In the globally competitive environment, open business innovations have become one of the essential strategies for enterprises to develop competitiveness and market potential. However, the execution of innovative business model and dynamic management decision support requires a systematic development enabling the rationale of strategic decisions. Since knowledge assets are key value drivers for company’s competitiveness, the strategic management of entrepreneurial knowledge and business innovations would be critical for the success of business practices. To enhance strategic planning capability with entrepreneurial knowledge and innovations, this paper integrates the principles of innovations and System Dynamics methodology to develop a Simulation-based Strategic Decision Support System (SSDSS) for innovative business development. Two real world case studies with empirical data are benchmarked to examine the effectiveness of SSDSS applications in supporting strategic planning and innovation-driven business development. Iterative computer simulations and scenario analysis were adopted to demonstrate the utilisations of market-oriented and sustainability-oriented innovations to improve operating performance by creating market value and shared value to the customer and the society.