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

• Main Authors: Fei Li, Jin Chen, Ying Ying
• Format: Article
• Language: English
• Published: MDPI AG 2019-08-01
• Series: Sustainability
• Subjects: N-K simulation; innovation search scope; complexity; environmental turbulence
• Online Access: https://www.mdpi.com/2071-1050/11/16/4279

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.