Our research in quantitative strategy

Growth can come from adding resources or using them more effectively. Our research examines the relationships behind company performance. It begins with a conceptual framework, tests relationships with statistical models and expresses them mathematically. The diagrams below trace that development.

Start with a conceptual framework

Corporate performance reflects asset specificity, economies of scale, diseconomies of scale and organization.

Start with a conceptual framework

Represent relationships quantitatively

Structural equation models show how strategic and structural choices relate to company performance.

Represent relationships quantitatively

Express the relationships mathematically

Matrix notation expresses the relationships in the structural equation model.

Express the relationships mathematically

Three equations for company performance

The model can be simplified into three equations describing company performance.

Three equations for company performance

This research underpins our analysis of growth, productivity and business performance.