Co-evolution of Knowledge Diffusion and Absorption: A Simulation-Based Analysis

The paper utilizes agent-based simulations to study diffusion and absorption of knowledge. The causal relation of diffusion on absorption is established in order. The process of diffusion and absorption of knowledge is governed by network structure and the dynamics of the recurring influence, conceptualized and modeled as legitimacy, credibility, and strategic complementarity; again a causal relation between the three in order. If not stationary, the agents can also move to acquire either random walk or profile-based mobility modes. Therefore, the co-evolution of network structure due to the mobility of the agents and the dynamics of the recurring influence of ever-changing neighborhood is also modeled. The simulation results reveal that – (i) higher thresholds for legitimacy and credibility determine slower, (ii) higher number of early adopters results into faster, and (iii) a scheduled and repeated mobility (the profile-based mobility) results in faster – absorption of knowledge.