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臺大管理論叢
第
27
卷第
3
期
15
incremental changes. Rather, it tends to keep searching for new opportunities and
differentiate itself from its competitor (Porter, 1980). That is, the percentage of innovation
capability here is positively related to competitive tension in the model.
To characterize the range of behavior our model produces, and to understand the impact
of each parameter including competitive tension and resource similarity, we have extensively
analyzed the model using a variety of methods. To highlight its most interesting dynamics,
we present a small subset of these experiments. In the simulation experiments that follow, we
rigorously examine the dynamics between two competing processes during a 10-year period,
and observe process evolvement patterns to further understand the interrelationship between
process competition and process capability development trade-offs. We use Vensim™
software to simulate the model by Euler integration with a time step of 0.25 months. The
results are insensitive to the use of smaller time steps or high-order integration methods such
as fourth-order Runge-Kutta. Table 1 provides the parameter values used in the base case
reported in this paper.
Table 1 Parameters and Initial Conditions for the Base Case
Parameter
t
i
Time to entry into rival’s market
6
t
w
Time to withdraw from common market
3
s
Response speed
1.5
g
Response delay
3
u
i
Effectiveness of developing process improvement capabilities
0.3
v
i
Effectiveness of developing process innovation capabilities
0.3
a
1
Adjustment value for logarithmic value of market commonality
3
a
2
Weight on the established mutual footholds
4
a
3
Adjustment for exponential value of established mutual footholds
-3
a
4
Adjustment value on public commitment without competition
1
a
5
Weight on the volume of retaliation attack
0.6
a
6
Weight on internal commitment by considering competition
0.8
Initial Conditions
M
0
Initial value of market commonality
0.2
H
0
Initial value of competitive tension
0.1
S
0
Initial value of resource similarity
0.2
5.1 Process Capability Development Trade-Off with Constant Fraction
First, consider the case in which the follower manages the capability development
trade-off with constant fraction. Our simulations reveal that without considering competition,