The effect of market-pull vs. resource-push orientation on performance when entering new markets

Jean-Philippe Timsit, Annick Castiaux, Yann Truong, Gerard A. Athaide and Richard R. Klink

Journal of Business Research, 2015, vol. 68, issue 9, 2005-2014

Abstract: This paper uses a multi-agent simulation to examine how the initial choice of strategic orientation impacts a firm's long-term performance. The results indicate that when entering a new market, market-pull firms achieve performance levels 4% higher on average than resource-push firms. However, the survival rate of market-pull firms is only 25%, far less than resource-push firms. These findings present firms with a Cornelian dilemma— i.e., strive for survival or maximize performance.

Keywords: Strategic orientation; Market-pull; Resource-push; Performance; Resource-based view; Multi-agent simulation (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:68:y:2015:i:9:p:2005-2014

DOI: 10.1016/j.jbusres.2015.02.014

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