Research On Green And Sustainable Innovation Of Tire Enterprises Based On System Dynamics

Amid aggravating environmental conditions, green tires which have characteristics of long life/small oil consumption/safety is of growing concern, and more and more automobile tire manufacturing enterprises (hereinafter referred to as the tire company) have implemented green development. Due to the existence of low-tech and poor product performance, China’s tire enterprises have difficulty competing with foreign brands in the high-end market, so it is very necessary for them to implement green and sustainable innovation strategy and make green tire. On the other hand, some developed countries have made some tire labeling regulations and implemented, which put forward higher requirements on the quality of tire. It is both "challenges and opportunity" to China’s tire enterprises. Whether the enterprises can seize the opportunity in global competition through the green and sustainable innovation strategy, also determines China’s tire industry can play a part in international competition.Combined with the general trend of tire development, the paper elaborates status and trend of green and sustainable innovation of China’s tire enterprises, the concrete research contents are as follows:Firstly, this paper analyses the status of China’s tire industry development, and points out the necessity and significance of China’s tire enterprise’s green and sustainable innovation. Secondly, the paper analyses the boundary of the enterprise innovation system, and reveals the mutual interaction between the enterprise decision-making/market demand and government regulation, then built a system dynamics model of tire enterprise’s green and sustainable innovation. The paper conducts the dynamic simulation and tests the accuracy of the model by using the data of Cooper Chengshan enterprise which is one of the major ten domestic tire enterprises.Finally, after the model has been verified, the paper sets different behaviors for the government/enterprise and consumer, then simulates. Through the analysis of simulation results, the paper provides some countermeasures for green development of China’s tire industry from the policy system/the enterprise innovation model/product marketing and cultivating green consumers, so as to provide a reference for the government and the tire enterprise decision.