Diseconomies of Time Compression

13 Pages Posted: 1 Sep 2012

See all articles by Karel Cool

Karel Cool

INSEAD - Strategy

Ingemar Dierickx

I. D. Consulting Limited

Luis Almeida Costa

Nova School of Business and Economics, Universidade Nova de Lisboa

Date Written: August 31, 2012

Abstract

This paper discusses the concept of time compression diseconomies and its importance to the sustainability of competitive advantage. It focuses on a key driver of time compression costs, the time-dependency of resource accumulation, and illustrates the effects of three characteristics of this accumulation process (productivity, cycle time and absorption constraints). The effects are illustrated using a stylized stocks-flows simulation with the iThink software.

Keywords: Time Compression, Sustainability, Competitive Advantage, Resources, Imitation, Cycle Time, Productivity, Absorption Limits, Stocks-flows Simulation

Suggested Citation

Cool, Karel and Dierickx, Ingemar and Costa, Luis Almeida, Diseconomies of Time Compression (August 31, 2012). INSEAD Working Paper No. 2012/78/ST. Available at SSRN: https://ssrn.com/abstract=2139385 or http://dx.doi.org/10.2139/ssrn.2139385

Karel Cool (Contact Author)

INSEAD - Strategy ( email )

Boulevard de Constance
77305 Fontainebleau
France
(33) (0)1 60 72 42 76 (Phone)
(33) (0)1 60 74 55 58 (Fax)

Ingemar Dierickx

I. D. Consulting Limited ( email )

C/- Duncan Cotterill, 1
Sir William Pickering Drive
Christchurch, 8053
New Zealand

Luis Almeida Costa

Nova School of Business and Economics, Universidade Nova de Lisboa ( email )

Lisbon
Portugal

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