How Dominance and Expectation influence investment on radical innovation－analysis of MBA students in Taiwan with MARKSTRAT Online simulation.

• Main Authors: Fuh-Sheng Huang, 黃復生
• Other Authors: Ying-Chan Edwin Tang
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/53187313608103771396

碩士 === 國立交通大學 === 管理學院碩士在職專班經營管理組 === 93 === The adage “Winners take all” has become the reality in modern business, specially, for manufacturing industry in Taiwan. Most of the “Winners” have focused on economic scale of production in mass production and cost cutting to dominate the market and to generate high profit. Indeed, the resources the dominants can employ are much higher than those non-dominants. Once the dominants enter into the market or product segment, they quickly establish effective barriers to hinder the entries of other competitors. However, the experiences of past successful strategy might be duplicated by the competitors. Therefore, investment alternative on radical innovation investment or improvement on existing products could be a resource trade-off dilemma. This research is to study how market dominance and managerial expectation influence company’s radical innovation investment decision. The data is compiled from the MARKSTRAT marketing competition by NCTU MBA students over eight periods of simulated games. The results show that market dominance does not have significantly statistical relationship with radical innovation investment. The market dominance, however, has positive impact on absolute investment model. In addition, the managerial expectation in introducing radical technologies has no significant impact on innovation investment. Innovation investment is beneficial to performance, but the amount of radical products introduced does not.