A Managerial Perspective on the Logic of Increasing Returns

The focus of this study is on the challenges faced by managers in effectively dealing with the new management logic of increasing returns as the information and knowledge intensity of their transformation processes rises. Dealing with these challenges is especially relevant for companies currently making the transition from capital and physical labor intensive transformation processes (old economy) to information and knowledge intensive transformation processes (new economy). For these companies, this study provides a definition of increasing returns, explains the sources of increasing returns and develops tools for monitoring the realization of increasing returns. These tools are applied at the Randstad Group, a leading temporary employment agency based in the Netherlands, currently making the transition from the old to the new economy. The study concludes with a discussion of the management implications of the new logic of increasing returns and suggestions for further research. 5001-6182 Business 5410-5417.5 Marketing Library of Congress Classification (LCC) HD 28 Management M Business Administration and Business Economics M 31 C 44 Marketing Statistical Decision Theory Journal of Economic Literature (JEL) M 10 Business Administration 85 A Business General 280 G 255 A Managing the marketing function Decision theory (general) European Business Schools Library Group (EBSLG) 90 A Management theory Gemeenschappelijke Onderwerpsontsluiting (GOO) 85.00 Bedrijfskunde, Organisatiekunde: algemeen 85.40 85.03 Marketing Methoden en technieken, operations research Classification GOO 85.05 Management, organisatie Bedrijfskunde / Bedrijfseconomie Marketing / Besliskunde