Research On The Impact Of Different Decision Organization Structure Of Firms On Their Product Performance Under Competitive Environment

The rapid development of science and technology is shortening the life cycle of products and the continuous emergence of new products in the market leads to great competitive intensity among firms.The competitive environment will affect firms' decision making.In addition,the application of new technologies makes the functions of firm products more and more rich,the products become more and more complex,and the product development difficulty becomes more and more difficult.So,under the competitive environment and product complexity,how will the performance of firm product decision-making organization change.Different individual members in product decision-making organization have different decision-making abilities.Different abilities make differences in judgment of alternatives,which ultimately affect the decision outcome from individual decision makers.Individual members' opinions can be aggregated into the overall organizational decision opinions through the different decision-making organizational structure.Different organizational structures have different effects on organization's decision performance.Factors such as decision complexity,market competition intensity,and consumer preferences will have an impact on the performance of product decision-making organizations with different structures.This paper will use agent-based computing experiments to research the above factors.First,this paper studies the impact of product complexity on the decision performance of different product decision organization structures,then this paper models alternative's space,individual decision-making ability and product decision organizational structure,respectively.In this paper,a multi-objective MNK fitness landscape model is used to model multi-attribute product decision alternatives.Decision ability functions are used to model decision-makers' screening ability.Different ways that aggregate individual decisions into organizational decisions is used to model product decision-making organizational structure.Secondly,this paper introduces competitive environment and changes in consumer preferences into the first model.Firms calculate market profits based on product pricing and sales quantity in the competitive environment.Consumer preferences are updated every period in accordance with certain rules.Then this paper researches the impact of product complexity,market competition,and changes in consumer preferences on the decision performance of different product decision-making organizations.This paper mainly draws the following conclusions through agent-based computational experimental methods: the increase in decision complexity expands the difficulty of decision making,which will reduce decision performance.Under the low decision complexity,the performance of Hierarchy organizations is the best.Under the high decision complexity,the performance of Polyarchy organizations is the best.Low decision-making ability favors broad search,and high decision-making ability favors local search.So the higher the decision-making ability,the easier it is to trap by local optimum.Therefore,the individual performance of general decision-making ability outperforms the individual performance of high decision-making ability.When the decision-making ability is low,the hierarchy organization has an advantage,and when the decision-making ability is high,the polyarchy organization has an advantage.In the competitive environment,the performance of low-ability firms is the worst.Highability firms have certain advantages in the early stages of market operation.The performance of general-ability firms will gradually catch up with high-ability firms in the later stage.The increase in market competition intensity will prolong the beginning advantage of high-ability firm,but the performance of general-ability firm will eventually exceed that of high-ability firm.Under general decision-making ability,the increase of market competition has a negative impact on the performance of hierarchy organizations,and has a positive impact on the performance of polyarchy organizations,while the performance of polyarchy organizations is bad in the early stages of market operations and will gradually improve in the later stages.The updated changes in consumer preferences have no significant impact on the profit performance of firms with high decision-making ability,but will reduce the profit performance of firms with low decision-making ability and increase the profit performance of firms with general decision-making ability.Under the general decision-making ability,the update and change of consumer preferences will increase the profit performance of polyarchy organizations and individual organizations and reduce the profit performance of hierarchy organizations and voting organizations.In summary,when facing a complex new product development decision-making environment,firms must fully consider factors such as decision complexity,decision ability,organizational structure,market competition,and changes in consumer preferences,and coordinate the relevant resources allocation of the firm,and make appropriate adjustments to the decision-making organizational structure at different stages of development so that the firm optimal their decision-making performance.