A framework for assessing and developing innovation capability through system dynamics approach (Case Study: Mashhad Powder Metallurgy Co.)

Document Type : Research Paper



The firm's innovation capability constitute set of enablers which are main driver innovation in today's business environment. They must constantly check out situation and interaction among innovation enablers and results in order to continuously improve innovation. Present study is proposed a dynamic framework to investigate the relationships between the enablers of innovation capability (leadership, innovation strategy, people, partnerships and resources, and process innovation) as well as expected results (customer, employee, organization and total performance) that are studied in a manufacturing company. Using information from the strengths of influence between five key components of innovation capability, by applying the DEMATEL method, as well as based on the logical assumption that, by improving the enablers, there will be an inevitable innovation results improvement, dynamic model of innovation capability was established. Simulation results of model showed that the tow enablers people and innovation strategy have minor role in the enhancing the maturity level of innovation capabilities. The company's policy scenarios determined more effort to improve people enabler promoting innovation capability maturity level result in a shorter period of time.


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