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Poster presentation at the 2012 International System Dynamics Conference, St. Gallen, Switzerland
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Using System Dynamics to Analyze Innovation Diffusion
Processes within Intra-organizational NetworksProcesses within Intra-organizational Networks
Philipp Wunderlich, Andreas Philipp Wunderlich, Andreas
Purpose: to demonstrate the usefulness
analyze intra-organizational innovation diffusion
Method: a purely algebraic model is replicated
environment before it is extended by relaxing
group diffusion and inter-group diffusion takegroup diffusion and inter-group diffusion take
Findings: the parallel occurrence of intra-
the outcome of diffusion processes significantly
reinforcing dynamics of intra-group diffusionreinforcing dynamics of intra-group diffusion
diffusion is heavily influenced by the structure
Implications: adopter-dominated groups should
adopter-dominated groups should be isolated
probability and speed of successful innovationprobability and speed of successful innovation
Limitations: only one network structure between
are considered to be homogeneous.
Krackhardt’s (1997) diffusion model
Positive word-of-mouth Adopters
Group 1
Negative word-of mouth
convert toNon-adopter Adopter
Non-adopters
Group 1
conversion1
Negative word-of mouth Group 1
Principle of “Optimal Viscosity”
1
3
3 3 32 2 2 2
1
0.5
5 5 5 5 5 54 4 4 4 4 43
3
3
2
2
1
1
0.5
2
1
0
5 5 5 5 5 541
1 1 1 1 10 45 90 135 180 225 270
Time (Day)Average Adopter Fraction: MGr1_Migration17.5
Average Adopter Fraction: MGr1_Migration15.0
Average Adopter Fraction: MGr1_Migration12.5
1 12 23 3
1
02
0
Adopters
Adopters
Adopters
* Radboud University Nijmegen, the Netherlands,
Average Adopter Fraction: MGr1_Migration12.5
Average Adopter Fraction: MGr1_Migration10.0
Average Adopter Fraction: MGr1_Migration07.5
3 34 45 5
Adopters
Adopters
Adopters
* Radboud University Nijmegen, the Netherlands,
Using System Dynamics to Analyze Innovation Diffusion
organizational Networksorganizational Networks
Philipp Wunderlich, Andreas Größler, Jac Vennix*Philipp Wunderlich, Andreas Größler, Jac Vennix*
usefulness of system dynamics as a methodology to
diffusion processes.
replicated and analyzed in a system dynamics
relaxing the restrictive assumption that intra-
take place consecutively.take place consecutively.
-group and inter-group diffusion can change
significantly. The interplay between the self-
diffusion and the balancing dynamics of inter-groupdiffusion and the balancing dynamics of inter-group
structure of the network.
should be connected to each other while non-
isolated from each other in order to increase the
innovation diffusions.innovation diffusions.
between groups was examined and all groups
Stock/flow structure of Krackhardt’s (1997) model
migration a21 migration a54migration a43migration a32
Adopters
Group 1
Adopters
Group 2
Adopters
Group 3
Adopters
Group 4
Adopters
Group 5
migration a12 migration a23 migration a34 migration a45
migration a21 migration a54migration a43migration a32
adopters
Group 1
Non-adopters
Group 2
Non-adopters
Group 3
Non-adopters
Group 4
Non-adopters
Group 5
conversion1 conversion2 conversion3 conversion4 conversion5
Group 1 Group 2 Group 3 Group 4 Group 5
migration n12 migration n23 migration n34 migration n45
migration n54migration n43migration n32migration n21
Comparison Krackhardt / System Dynamics
543 3 32 2 2 21 1 1 1 1 543 32 2 21 1 1 1 1
5
5
4
44
3
3
3 3 3
2
2
2 2 2 21 1 1 1 11
0.5
5
5
4
4
4
3
3
3 3
2 2
2
2 2 21 1 1 1 1 1
5 5 5 5
5
4 4 43 32
45 90 135 180 225 270
Time (Day)
[gr1] : MGr1_Migration09.8
[gr2] : MGr1_Migration09.8
[gr3] : MGr1_Migration09.8
1 12 23 3
0 5 5 5 5 54 4 4 43 332
0 45 90 135 180 225 270
Time (Day)
Adopters [gr1] : MGr1_Migration10.4
Adopters [gr2] : MGr1_Migration10.4
Adopters [gr3] : MGr1_Migration10.4
1 12 23 3
Netherlands, {p.wunderlich, a.groessler, j.vennix}@fm.ru.nl
[gr3] : MGr1_Migration09.8
[gr4] : MGr1_Migration09.8
[gr5] : MGr1_Migration09.8
3 34 45 5
Adopters [gr3] : MGr1_Migration10.4
Adopters [gr4] : MGr1_Migration10.4
Adopters [gr5] : MGr1_Migration10.4
3 34 45 5
Netherlands, {p.wunderlich, a.groessler, j.vennix}@fm.ru.nl