A System Dynamic Model For Knowledge Absorption Of Equipment-manufacturing Enterprises In The Open Innovative Environment

Technological innovation is an inexhaustible source of long-termcompetitiveness of an enterprise, and open innovation has become the strategicchoice of many Chinese equipment manufacturing enterprises to promote the abilityof independent innovation. Knowledge is the base of technological innovation, andis interacting with and inter-influencing technology. Therefore, continuouslyimproving the knowledge absorptive capacity in the process of cooperation withexternal organizations is an important approach to increase the knowledge storageand to improve the innovation performance.Applying the principle and method of System Dynamics, the System Dynamicsmodel of knowledge absorptive capacity system of Chinese equipmentmanufacturing enterprises in the open innovative environment is established. Thedynamic evolution mechanism of absorptive capacity of enterprises is revealedthrough numerical simulation from the System Dynamics model, as well as that thealternatives to improve the system behaviours are explored.First of all, the practical system is analysed, and the research questions and thesystem boundary are settled. The whole system is divided into three sub-models:External knowledge network subsystem, Knowledge absorption subsystem, andTechnological innovation subsystem. The base model is obtained throughRate-Level-Tree Modelling, with five levels and six rates in it. In the modellingprocess, some auxiliary variables, such as knowledge difference, level of trust,technology difference, learning willingness and capacity, incentive system and so onare taken into considered. The nonlinear dynamic differential equations controllingthe levels are obtained, and some key dynamic feedback structures in the model areanalysed. Then, the verification and validation of the model is tested, to make surethe feasibility and a certain level of credibility of the model. Finally, the model isrun with numerical simulation, integrated with the analytical analysis of systemdynamics equations, the system behaviours of the model over time under severaldifferent conditions are obtained. That contributes to explain the internal mechanismand evolution rules of knowledge absorption during the cooperation with externalorganizations and technological innovation from existing knowledge within theenterprises. Furthermore, from the simulation results, several alternatives to improvethe system behaviours are proposed, providing theoretical support anddecision-making basis for Chinese equipment manufacturing and some other similarenterprises.