A competitive dynamics perspective on evolutionary game theory, agent-based modeling, and innovation in high-tech firms

Ruihan Zhang (School of Economics and Management, Harbin Engineering University, Harbin, China)
Bing Sun (School of Economics and Management, Harbin Engineering University, Harbin, China)

Management Decision

ISSN: 0025-1747

Publication date: 26 June 2019

Abstract

Purpose

The purpose of this paper is to determine how high-tech firms should choose between independent research and development and technology introduction as well as to ascertain the effects of the three elements of competitive dynamics on the evolution of innovative behavior-based decisions and competitive results.

Design/methodology/approach

This paper describes the construction of an evolutionary game model and a multi-agent-based model of innovative behavior-based decisions by heterogeneous high-tech firms. The models are used to analyze the evolution path and evolutionarily stable strategy of innovative behavior-based decisions. In addition, multi-agent-based simulation is used to gain insight into the effects of competitive dynamics on the dynamic evolution of innovative behavior-based decisions.

Findings

This paper reveals four evolutionary equilibrium states of the innovation behavior-based decisions of high-tech firms. Based on the findings, these overall evolutionary trends are not affected by the timing of competitive market entry or the intensity of competition. In addition, simulated evidence is added that the timing of competitive market entry is an important factor affecting market-leading innovative strategies and dynamic competition results, and competition intensity is closely related to the evolutionary speed of innovation behavior-based decisions.

Originality/value

The key contribution of this paper is its new view of innovative behavior-based decisions from a competitive dynamics perspective. The new competitive dynamics-based framework for innovative behavior-based decisions of high-tech firms proposed in the paper can resolve the problem of obtaining a sustainable competitive advantage for high-tech firms in a competitive dynamics context.

Keywords

Acknowledgements

Conflict of interest: the authors declare that they have no conflict of interest.

This work was supported by the National Natural Science Foundation of China under Grant 71774035 and Grant 71372020, and the China Scholarship Council (CSC).

Citation

Zhang, R. and Sun, B. (2019), "A competitive dynamics perspective on evolutionary game theory, agent-based modeling, and innovation in high-tech firms", Management Decision, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MD-06-2018-0666

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Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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