The origins of time compression diseconomies

Research Summary That capability development is subject to time compression diseconomies (TCD) well-known in the strategy literature. However, so far, there limited attention paid its origins, that is, why it exists, and demonstrating empirically. In context of fertility clinics United Kingdom, we show faster experience accumulation associated with lower success rates; results shallower learning curves. We also TCD exacerbated for mainly treat complex cases mitigated employ an integrator coordinate across different specialist functions involved treatment process. propose differential rates as mechanism underlies TCD, develop implications firm capabilities sources competitive advantage. Managerial As firms pursue new opportunities, intuitive grow fast. Rapid growth has many advantages, including a quicker payback on investment well garner first mover advantages. can be dark side such high paced growth. By analyzing data in-vitro fertilization grew fastest were slower improving their rates, while growing improved more increasing experience. This penalty rapid severe cases, but ameliorated by better coordination between activities. Our research serves warning not always better.