Monitoring self-reinforcing mechanisms : the case of Randstad Group

Self-reinforcing mechanisms in firms and markets come in four forms: (1) scale effects; (2) learning effects; (3) interaction effects, and; (4) network effects. Monitoring these self-reinforcing mechanisms is necessary for managers to be able to strategically act upon them and in this way improve their firm’s competitive performance. Unfortunately the tools that managers could use for doing this are currently not available. Based on extensive interviews with academics and practitioners, we developed a set of tools that managers can use to monitor the presence of self-reinforcing mechanisms in their firms and markets. The applicability of the tools was tested in a case study with the Randstad Group, the world’s third largest staffing firm.