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從動態競爭觀點審視作業流程管理的創新與改進

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4.4 Methodology and Justification

Davis et al. (2007), Harrison et al. (2007), and Nair et al. (2009) note that when a study

does not seek to predict the outcome of a particular set of equations, as is the case in our

study, a computational model using a set of parameter values qualifies as a carefully planned

and valid experimentation process as long as it satisfies the general conditions of the

problem being studied and shows the existence of some property of general interest. If the

outcome from computer simulations matches the behavior of the dynamic systems theorized,

the computational model then presents a viable explanation, at least until another contender

better matches or more parsimoniously matches it (Vancouver et al., 2010). In the next

section, we follow the practice for developing dynamic computational theory through a

computer simulation (Sterman, 2000).

5. Analysis

In this section, we evaluate the follower firmʼs various process capability development

trade-offs. We begin by addressing the effect of competition on process improvement and

innovation, emphasized by Rahmandad (2012), and follow Laamanen and Wallin (2009)

process of varying the three types of capability development trade-offs: constant-fraction,

short-termism, and long-term development. We then evaluate how each trade-off shapes the

followerʼs process management and development to address its competitive interactions with

the leader. We derive the subsequent effect of the investment on followerʼs ability to survive

and grow in a competitive environment.

Specifically, the followerʼs capability development trade-off with constant fraction

between innovation and improvement capabilities is consistent with prior studies in the

absence of competition (Repenning and Sterman, 2002). In this case, the follower does not

consider competitive tension at all and is likely to develop process improvement capability

as a general rule as long as it has adequate resources to support learning from the leader.

Otherwise, the follower will shift its investment to continuously develop its process

innovation capabilities. Second, a short-termism follower might appreciate the value of

process innovation, but the competition will pressure it to commit only to incremental

process improvement (Rahmandad, 2012). In this case, the percentage of innovation

capability is negatively related to competitive tension. Finally, the follower adopting a long-

term-growth capability development trade-off is not satisfied with the small wins from its