Decision-Making Analysis of Enterprises’ Adopting Innovation Technology
European Business & Management
Volume 2, Issue 2, November 2016, Pages: 73-79
Received: Oct. 7, 2016; Accepted: Oct. 29, 2016; Published: Jan. 21, 2017
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Author
Guozhong Yang, Business School, Central South University, Changsha, China
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Abstract
After analyzing the uncertainty of technology innovation diffusion (TID), this paper proposes the model of enterprises’ TID based on geometric Brownian motion with jump, and analyzes the optional timing and influence of adopting innovation technology on TID by each parameter. The results show that enterprise should immediately adopts the technology when its market demand is greater than the optimal investment threshold of enterprise; changes of market environment is conducive to TID; increasing of market uncertainty and the expected rate of return will accelerate TID, and the increasing of market interest rate will inhibit TID.
Keywords
Uncertainty, Technology Innovation Diffusion, Geometric Brownian Motion, Model
To cite this article
Guozhong Yang, Decision-Making Analysis of Enterprises’ Adopting Innovation Technology, European Business & Management. Vol. 2, No. 2, 2016, pp. 73-79. doi: 10.11648/j.ebm.20160202.19
Copyright
Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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