A decision model for dynamic capabilities based on learning effects

Xiaobo Wu, Songyi Xu, Songcui Hu

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The innovation-based competition becomes the mainstream in time of the new economy. Under this form of competition, conducts of rivals, changes of environments, or emergences of new technologies all can erode the heterogeneous competencies of the target company very quickly. There are two ways for companies to adapt to the changing environment, the ad hoc problem solving mode and the dynamic routine mode. This paper discussed how to choose the proper change mode by comparing their cost structures. We found that the slope of the cost curve of the dynamic routines would decline with the increase of the frequency of changes because of the learning effects. Moreover, every company has its special turning point based on the cost structure and learning efficiency. Then we deduced a equation to find such turning point, and discussed the methods to calculate the key parameters in the decision model and its typical uses under two special scenarios.

Original languageEnglish (US)
Title of host publicationICMIT 2006 Proceedings - 2006 IEEE International Conference on Management of Innovation and Technology
Pages42-46
Number of pages5
DOIs
StatePublished - Dec 1 2006
Externally publishedYes
Event2006 IEEE International Conference on Management of Innovation and Technology, ICMIT 2006 - Singapore, Singapore
Duration: Jun 21 2006Jun 23 2006

Publication series

NameICMIT 2006 Proceedings - 2006 IEEE International Conference on Management of Innovation and Technology
Volume1

Other

Other2006 IEEE International Conference on Management of Innovation and Technology, ICMIT 2006
CountrySingapore
CitySingapore
Period6/21/066/23/06

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ASJC Scopus subject areas

  • Management of Technology and Innovation
  • Computer Science(all)

Cite this

Wu, X., Xu, S., & Hu, S. (2006). A decision model for dynamic capabilities based on learning effects. In ICMIT 2006 Proceedings - 2006 IEEE International Conference on Management of Innovation and Technology (pp. 42-46). [4035790] (ICMIT 2006 Proceedings - 2006 IEEE International Conference on Management of Innovation and Technology; Vol. 1). https://doi.org/10.1109/ICMIT.2006.262216