Abstract for: Modeling Strategic Technology Management With a Hybrid Model
Abstract: In this study we will introduce a hybrid model to describe competition in a constantly developing market environment. A hybrid model referred here is a model that has both system dynamic and agent-based elements. Modeling effort begins from a literature review to strategic management and management of technology. From this background we build a model combining the theories from multiple theory tracks. The model is used to test the effects of more rapid strategy process to firm’s profitability. To test the results we use statistical methods to analyze the data gathered from sensitivity runs. Our model founds support for the proposition that increasing agility increases also the competitive advantage of the firm. We also conclude that hybrid modeling is a strong research tool, but it comes with drawbacks of high hardware requirements and challenging more complex modeling tools.