Vertic Eridani Budi Darmawan, Yuh Wen Chen, Aisyah Larasati
The concept of creative destruction is popularly discussed in the academic field of management of technology (MOT) for a long time. Although most scholars believe that the success of a firm contains the seeds of its own destruction, how this mechanism works on firms is still vague and hard to describe. We propose an interesting view inspired by Schumpeter's work and genetic algorithms (GAs) so as to explain how creative destruction is raised. Our idea is simple, original and creative. Each firm is originally viewed as a gene and each firm in population is continuously evolved when the environment is dynamically changed: different sizes of firm increase their fitness so as to survive in our artificial experiment. That is, the individual firm is self-destroyed since each gene has its inherent limit. Our simple evolutionary system is able to simulate the competing behavior among firms and also explains how creative destruction could be oriented. Our study is a good beginning toward evolutionary economics by Gas. © 2019 IEEE.
Universitas Negeri Malang, Department of Industrial Engineering, Malang, Indonesia; Institute of Industrial Engineering and Management, Da-Yeh University, ChangHwa, Taiwan
