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| Author: | Caldart, A. A. Oliveira, F. |
| Title: | Analysing industry profitability: a "complexity as cause" perspective |
| Journal: | European Management Journal
2010 : APR, VOL 28:2, p. 95-107 |
| Index terms: | competitive strategy industrial structure complexity industrial relations |
| Language: | eng |
| Abstract: | In this article, the impact of competitive complexity on the profitability of an industrial sector is investigated. The authors generate simulations portraying industries as complex systems, including co-evolving firms that are linked to each other by a number of competitive dimensions. It is found that high level of industry complexity (due to high number of competitive dimensions) has a negative effect on industry performance. This effect, however, appears to weaken as the number of competing companies increases in the industry, resulting from the decrease in the number of competitive dimensions linking the firms together. |
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