If Entry Strategy And Money Go Together, What Is The Right Side Of The Coin?
Source: Cornell University
The goal of this paper is to determine which strategic model, either IO or RBV, allows firms to generate the highest performance on a competitive market. Contrasting with classical studies that mobilize analyses as VARCOMP, the authors deploy a multi-agent system simulating the behavior of firms adopting RBV or IO strategic models. For an equivalent proportion of both strategic orientations, they study the instant and total performances of the firms on hyper-competitive markets. They show that the performance of best-performing IO firms, measured by the ROA, is higher in the short term, but that RBV firms obtain an average higher sustained performance, in the long term.