Diseconomies of Time Compression
13 Pages Posted: 1 Sep 2012
Date Written: August 31, 2012
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: Suggested Citation