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

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

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.

Suggested Citation

  • Timsit, Jean-Philippe & Castiaux, Annick & Truong, Yann & Athaide, Gerard A. & Klink, Richard R., 2015. "The effect of market-pull vs. resource-push orientation on performance when entering new markets," Journal of Business Research, Elsevier, vol. 68(9), pages 2005-2014.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:9:p:2005-2014
    DOI: 10.1016/j.jbusres.2015.02.014
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