Positioning and Performance in Simulated Networks
AbstractIn the last decade, simulation has been used with greater frequency to analyze company performance. Studies show that companies that incorporate network characteristics into their decision making processes produce better results over the competition. This study examines how simulations can enhance communication, trade and intercompany activities. Those, in turn, may result in better performance and higher profits. We develop a simulated network and investigate the network impact on the behavior of the companies and their outcome. The results show that positioning the enterprise in certain points within a network can improve its performance and increase its profits. Those findings validate previous studies on strategic networks.
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