The relationship between technology management and technological capability based on NKC model

Abstract

Technology management(TM) and technological capability (TC) are both important to firm performance. Although many firms attach attention to TM and TC, but they cannot get better performance. One of the important reasons is that they do not understand and handle the relationship between TM and TC properly. This paper aims to reveal the synergy mode between TM and TC. Firstly it analyzes the elements of TM and TC, and their relationships. Then it constructs a simulation model based on NKC model. Then a series of simulations are run to identify the fittest synergy mode by exploring the effects of the relationships between TM and TC on firm performance. The results show that in the condition that TM elements and TC elements are weakly linked; the firm should make TM dominate the synergy between TM and TC.