Competence Systemics and Survival: Simulation and Empirical Analyses

Abstract

The aim of this paper is to give empirical evidence of the fundamental mechanisms underlying the resource systemics: time compression diseconomies, asset mass efficiency, and interconnectedness of assets. It assumes that time, resource properties and interactions are the critical elements leading to accumulation of idiosyncratic resources, firm performance and survival. Results from a Cox regression on a simulated dataset confirm the protective effects of time compression diseconomies, asset mass efficiency, and interconnectedness of assets against firm's death.

Citation

Durand, R. and Guessoum, Z. (2005), "Competence Systemics and Survival: Simulation and Empirical Analyses", Sanchez, R. and Heene, A. (Ed.) Competence Perspectives on Resources, Stakeholders and Renewal (Advances in Applied Business Strategy, Vol. 9), Emerald Group Publishing Limited, Leeds, pp. 29-54. https://doi.org/10.1016/S0749-6826(05)09003-7