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.
Highlights
Innovation search, which is defined as “a problem-solving activity in which firms solve problems through combining knowledge elements to create new products” [1], has attracted increasing attention from both academics and practice
This paper develops a theoretical model on innovation search scope by considering the moderating effects of environmental turbulence and technology complexity with the N-K adaptive landscape method
If the innovation search scope is valuable, what about its contextual factors? According to our reviews and observations, technological complexity and environmental turbulence might be as two essential factors, which would influence the effect of the innovation search scope on innovation performance
Summary
Innovation search, which is defined as “a problem-solving activity in which firms solve problems through combining knowledge elements to create new products (pp. 88)” [1], has attracted increasing attention from both academics and practice. This paper develops a theoretical model on innovation search scope by considering the moderating effects of environmental turbulence and technology complexity with the N-K adaptive landscape method. According to our reviews and observations, technological complexity and environmental turbulence might be as two essential factors, which would influence the effect of the innovation search scope on innovation performance. The simulation results show that in a stable environment, a firm could expect significant performance improvement by expanding its Innovation Search Scope from low to medium level in accordance to the research of scholars, such as Katila and Ahuja [3] and Laursen and Salter [5]. Dealing with the technological components becomes even more complicated when factors, such as technological complexity and environmental turbulence, set in Our paper takes these determinants into consideration and studies how they jointly influence innovation performance.
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