Abstract for: Investigating the causes of the growth-profitability efficacy syndrome
Successfully implementing strategic plans for revenue growth has proven difficult due to unanticipated interactions of process constraints and managerial decision making. Validated against 30 years of Intel Co. data, we develop and show results of a dynamic firm-growth model that explicitly examine these interactions to investigate causes of the “growth-profitability efficacy syndrome,” a common form of profitability decline in strategic planning.