Friday, August 31, 2012

COOL Karel, DIERICKX Ingemar, ALMEIDA COSTA Luis
Diseconomies of Time Compression
INSEAD Working Paper 2012/78/ST

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.