Competition vs. Profitability

8 Pages Posted: 21 Jul 2008

See all articles by J. Scott Armstrong

J. Scott Armstrong

University of Pennsylvania - Marketing Department

Richard H. Franke

affiliation not provided to SSRN

Paul M. Vaclavik

affiliation not provided to SSRN

Date Written: July 21, 2008

Abstract

Corporate cultural emphasis on long-term competitiveness as opposed to shorter-term rofitability is evaluated in terms of effectiveness in achieving higher profit margins, real profitability, and survival in the long term. Competitive orientation continues to have adverse impact even with a lag of four decades. If supported by further, multivariate analyses, this finding suggests amendments to what has become standard strategic management thinking, perhaps in favor of earlier and more conventional microeconomic focus on profits.

Suggested Citation

Armstrong, J. Scott and Franke, Richard H. and Vaclavik, Paul M., Competition vs. Profitability (July 21, 2008). Available at SSRN: https://ssrn.com/abstract=1164569 or http://dx.doi.org/10.2139/ssrn.1164569

J. Scott Armstrong (Contact Author)

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States
215-898-5087 (Phone)
215-898-2534 (Fax)

HOME PAGE: http://marketing.wharton.upenn.edu/people/faculty/armstrong.cfm

Richard H. Franke

affiliation not provided to SSRN ( email )

Paul M. Vaclavik

affiliation not provided to SSRN ( email )

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