IDEAS home Printed from https://ideas.repec.org/a/eee/worbus/v32y1997i4p333-350.html

Increasing returns: Competing for customers in the global market

Author

Listed:
  • Vandermerwe, Sandra

Abstract

This paper discusses emerging, increasing returns notions, comparing it to the diminishing returns model of the industrial era, with the consequent implications for the global manager. Increasing returns, it is argued, comes from a different set of management premises: capitalising on the time value of individual customers in new "market spaces", rather than from making and moving more "things" in traditional product/market categories; leveraging intangibles, abundant and infinite, which increasingly deliver the value to customers; and sharing markets, resources and technologies with others in new "competitive spaces", rather than adopting proprietary behaviour, in order to get critical market mass and lock in. These premises, if consciously managed and translated into strategy, the paper argues, lead to an accumulating advantage and disproportionate returns for corporations.

Suggested Citation

  • Vandermerwe, Sandra, 1997. "Increasing returns: Competing for customers in the global market," Journal of World Business, Elsevier, vol. 32(4), pages 333-350, January.
    • Handle: RePEc:eee:worbus:v:32:y:1997:i:4:p:333-350
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S109095169790016X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Romer, Paul, 1993. "Idea gaps and object gaps in economic development," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 543-573, December.
    3. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-131, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stolpe, Michael, 1995. "Technology and the dynamics of specialization in open economies," Open Access Publications from Kiel Institute for the World Economy 738, Kiel Institute for the World Economy.
    2. Georg Erber, 1994. "Verdoorn's or Okun's Law?: Employment and Growth Experiences in OECD Countries, 1960-1993," Discussion Papers of DIW Berlin 98, DIW Berlin, German Institute for Economic Research.
    3. Miguel Cruz Vásquez & Alfonso Mendoza Velázquez & Beatriz Pico González, 2019. "Foreign direct investment, economic opening and economic growth in Lat," Contaduría y Administración, Accounting and Management, vol. 64(1), pages 15-16, Enero-Mar.
    4. Sandra Silva & Aurora Teixeira, 2009. "On the divergence of evolutionary research paths in the past 50 years: a comprehensive bibliometric account," Journal of Evolutionary Economics, Springer, vol. 19(5), pages 605-642, October.
    5. Shahbaz, Muhammad & Nasreen, Samia & Abbas, Faisal & Anis, Omri, 2015. "Does foreign direct investment impede environmental quality in high-, middle-, and low-income countries?," Energy Economics, Elsevier, vol. 51(C), pages 275-287.
    6. G Cameron, 1996. "Innovation and Economic Growth," CEP Discussion Papers dp0277, Centre for Economic Performance, LSE.
    7. Muhammad Shahbaz & Samia Nasreen & Talat Afza, 2014. "Environmental Consequences of Economic Growth and Foreign Direct Investment: Evidence from Panel Data Analysis," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 2(2), pages 14-27, June.
    8. Elvira Sapienza, 2009. "FDI and Growth in Central and Southern Eastern Europe," Quaderni DSEMS 12-2009, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
    9. Szalavetz, Andrea, 2011. "Innovációvezérelt növekedés? [Innovation-driven growth?]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 460-476.
    10. Sylwia Zajączkowska-Jakimiak, 2006. "Wiedza techniczna i kapitał ludzki w teorii wzrostu gospodarczego," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 11-12, pages 47-69.
    11. Lai, Mingyong & Peng, Shuijun & BAO, Qun, 2006. "Technology spillovers, absorptive capacity and economic growth," China Economic Review, Elsevier, vol. 17(3), pages 300-320.
    12. Celal Kucuker, 2003. "Türkiye Ýktisat Kongresi Büyüme Stratejileri Çalýþma Grubu," Working Papers 2003/5, Turkish Economic Association.
    13. Voxi Heinrich S Amavilah & Richard T. Newcomb, 2004. "Economic Growth and the Financial Economics of Capital Accumulation under Shifting Technological Change," GE, Growth, Math methods 0404001, University Library of Munich, Germany.
    14. Simplice A. Asongu & Joseph Nnanna & Paul N. Acha-Anyi, 2020. "On the simultaneous openness hypothesis: FDI, trade and TFP dynamics in Sub-Saharan Africa," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-27, December.
    15. Taylor, Alan M., 1999. "Sources of convergence in the late nineteenth century," European Economic Review, Elsevier, vol. 43(9), pages 1621-1645, October.
    16. Zigrand, Jean-Pierre, 2014. "Systems and systemic risk in finance and economics," LSE Research Online Documents on Economics 61220, London School of Economics and Political Science, LSE Library.
    17. Simon Wiederhold, 2012. "The Role of Public Procurement in Innovation: Theory and Empirical Evidence," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 43, April.
    18. Voxi Heinrich Amavilah & Antonio Rodríguez Andrés, 2024. "Knowledge Economy and the Economic Performance of African Countries: A Seemingly Unrelated and Recursive Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 110-143, March.
    19. Petrakis, P.E. & Stamatakis, D., 2005. "Human capital, growth and convergence traps: Implications from a cross-country analysis," Proceedings of the German Development Economics Conference, Kiel 2005 26, Verein für Socialpolitik, Research Committee Development Economics.
    20. Cem Ertur & Wilfried Koch, 2007. "Growth, technological interdependence and spatial externalities: theory and evidence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(6), pages 1033-1062.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:worbus:v:32:y:1997:i:4:p:333-350. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.