IDEAS home Printed from
   My bibliography  Save this paper

If Entry Strategy and Money go Together, What is the Right Side of the Coin?


  • Jean-Philippe Timsit
  • Annick Castiaux


The goal of this study is to determine which strategic model, either IO or RBV, allows firms to generate the highest performance on a competitive market. Contrasting with classical studies that mobilize analyses as VARCOMP, we deploy a multi-agent system simulating the behavior of firms adopting RBV or IO strategic models. For an equivalent proportion of both strategic orientations, we study the instant and total performances of the firms on hypercompetitive markets. We show that the performance of best-performing IO firms, measured by the ROA, is higher in the short term, but that RBV firms obtain an average higher sustained performance, in the long term. Moreover, when they are in competition with IO firms on a highly profitable and competitive market, RBV firms which dare to enter such markets obtained generally the highest performance.

Suggested Citation

  • Jean-Philippe Timsit & Annick Castiaux, 2011. "If Entry Strategy and Money go Together, What is the Right Side of the Coin?," Papers 1104.0777,
  • Handle: RePEc:arx:papers:1104.0777

    Download full text from publisher

    File URL:
    File Function: Latest version
    Download Restriction: no

    References listed on IDEAS

    1. Wernerfelt, Birger & Montgomery, Cynthia A, 1988. "Tobin's q and the Importance of Focus in Firm Performance," American Economic Review, American Economic Association, vol. 78(1), pages 246-250, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:arx:papers:1104.0777. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (arXiv administrators). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.