Increasing returns means that a company can produce higher levels of output with relatively lower levels of input. This article focuses on the challenges faced by managers in dealing with increasing returns. Dealing with these challenges is especially relevant for companies with information and knowledge intensive business processes. For the managers of these companies this article (1) provides a definition of increasing returns, (2) explains the sources of increasing returns, (3) discusses the consequences of increasing returns for the rules of market competition, and (4) presents guidelines for competing in increasing returns markets.

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European Management Journal
Erasmus Research Institute of Management

den Hartigh, E., & Langerak, F. (2001). Managing increasing returns. European Management Journal, 19(4), 370–378. doi:10.1016/S0263-2373(01)00038-X