A decision support system to evaluate and formulate business portfolio strategies is proposed. Strategies are expressed in terms of market share objectives to be achieved in each of the N business units in the portfolio. STRATPORT evaluates a strategy in terms of the net present value of its...

Bowman (1980) found an unexpected and paradoxical negative relationship between risk and return in many firms, and, for about a decade, various researchers have attempted to explain the paradox. This article summarizes some of those explanations, and shows that industry conditions and business...

Both noncooperative and cooperative game theory have been applied to business strategy. We propose a hybrid noncooperative-cooperative game model, which we call a biform game. This is designed to formalize the notion of business strategy as making moves to try to shape the competitive...

This paper explores the differences in observed risk propensity among petroleum firms and their impact on firm performance. In this work, we (1) develop a decision theoretic model which measures a firm's risk propensity in the form of an "implied" utility function; (2) investigate changes in...

As companies continue to make large investments in information technology (IT), questions about how and in what contexts such investments pay off have gained importance. We develop a theoretical framework to explain how IT investments could pay off in the economically significant context of...

This paper discusses important friction forces that future theories of strategy must incorporate. Some of these are technological and environmental; but the most important ones---it is argued---are psychological. The view is developed that strategy, at its core, concerns the development and...

Rivalry-restraint-based theoretical mechanisms predict that an industry's profits will increase when its firms engage in less price competition, or less direct competition, with each other. Competitive-advantage-based theoretical mechanisms predict that a firm's profits will increase when it...

In this paper, a set of hypotheses relating competitive and cooperative business strategies and technology strategies to new venture performance are developed. These hypotheses are tested using data collected from the Initial Public Offering (IPO) documents of a sample of 52 new ventures in the...