Evolutionary Dynamics of Interfirm Cooperative System for Radical Innovation from Knowledge Collaboration Perspective

Abstract

Interfirm cooperation can be seen as a significant and effective way for exploring radical innovation. In this article, a framework of interfirm cooperation, with a core manufacture and upstream counterparties in industry, and its evolving mechanism in the reverse-chain radical innovation are established from the perspective of the fundamental role played by knowledge collaboration. Then, an evolution model of interfirm cooperation is constructed on the theory of vibration mechanics, and its evolutionary dynamics is explored through numerical and simulation analysis mainly on the key factors of knowledge potential difference and knowledge rent-seeking behaviour within the firms. The findings show that, if there is no knowledge-based rent-seeking behaviour from the upstream firms, the probable innovative performance from the interfirm cooperation should vary for the knowledge potential difference between the cooperative firms, but can come to a certain equilibrium state. Meanwhile, if the knowledge rent-seeking behaviour does exist, knowledge potential difference would lead the innovative performance evolving ultimately in divergence. What’s more, the negative effect caused by the rent-seeking behaviour could be alleviated or weakened to some extent by the excitation mechanisms presented by the core firms in the cooperation system. Therefore, the drawn conclusions should be useful for the core manufactures’ implementing various strategies to maintain or enhance the cooperation for radical innovation in industry.