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

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,...

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Bibliographic Details
Published in:Journal of business research 2015-09, Vol.68 (9), p.2005-2014
Main Authors: Timsit, Jean-Philippe, Castiaux, Annick, Truong, Yann, Athaide, Gerard A., Klink, Richard R.
Format: Article
Language:English
Subjects:
Decision making models
Economic analysis
Financial performance
Firm theory
Market entry
Market theory
Market-pull
Marketing
Multi-agent simulation
Resource-based view
Resource-push
Simulation
Strategic orientation
Studies
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Summary: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.
ISSN:0148-2963
1873-7978
DOI:10.1016/j.jbusres.2015.02.014