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Technology cooperation modeling of multiple profit-centered business units: A system dynamics framework

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  • Wang, Kung-Jeng
  • Lee, Kun-Shan
  • Liao, Jia-Hong

Abstract

Firms in the competitive original design manufacturing (ODM) industry continue to strengthen their technology capabilities in order to retain competitiveness in the market. Technology cooperation among multiple profit-centered business units of an ODM enterprise becomes a critical issue. This study proposes a new system dynamics model to investigate system performance over time for multiple profit-centered business units (BUs) of an enterprise, which features strategic capital deployment and technology cooperation. A case study for a leading global ODM firm in the electronics industry is investigated. Our simulation results confirm that the proposed model can effectively determine profit changes under different capital deployment polices and technology cooperation protocols. Further, the experimental design systemically examines the impacts of key parameters from two perspectives: single BU and multiple BUs. The present study improves quality decision-making for effective capital deployment and mutually beneficial technology cooperation between the BUs of a firm.

Suggested Citation

  • Wang, Kung-Jeng & Lee, Kun-Shan & Liao, Jia-Hong, 2019. "Technology cooperation modeling of multiple profit-centered business units: A system dynamics framework," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 162(C), pages 195-220.
    • Handle: RePEc:eee:matcom:v:162:y:2019:i:c:p:195-220
    DOI: 10.1016/j.matcom.2018.11.007
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