Prof. Nils Stieglitz (University of Southern Denmark)
- Datum: 23.07.2009
Ort: Raum 024, Ludwigstr. 28 RG
Resource Learning and the Dynamics of Strategic Factor Markets
The strategy literature assumes too much knowledge about resource value among owners and sellers of resources. We relax this assumption and explore resource trading in contexts where both sellers and buyers have limited information about the resources they trade. Rather than looking at conditions that would give buyers advantage from resource trading, we are therefore led to consider how both sellers and buyers gain information about resource quality and how they utilize this information in resource trading. We develop a modelling structure to study the learning processes of both sellers and buyers and how they influence trading dynamics on markets for resources. We establish a structural seller’s advantage in strategic factor market, but also find that trading will only vanish under rather unrealistic assumptions. Our results thereby reconcile contradictory empirical evidence showing that trade does not vanish even if buyers of resources are often short-changed. The consideration of market depth (relative scarcity of resources), different grades of idiosyncratic resources, and different contexts of resource learning (stable technology, continuous or discontinuous technological improvement) offer detailed insights into conditions where resource learning is a source of trading advantage in strategic factor markets.
- Datum: 29.07.2009
Ort: Raum 024, Ludwigstr. 28/RG
Strategic Focus and the Quest for Temporary Advantage
The paper addresses the challenge of how firms adapt to a turbulent environment and reap temporary competitive advantages. We contrast strategic flexibility and focus in the sampling of alternatives. Our results suggest that strategic focus reaps temporary advantages in more turbulent environments, while strategic flexibility is viable in less turbulent markets.