Timing of resources exploration in the behavior of firm - Innovative approach and empirical simulation

  • Authors:
  • Hsiu Fen Tsai;Bao Rong Chang

  • Affiliations:
  • Department of International Business, Shu-Te University, 59, Hun Shang Road, Yen Chao, Kaohsiung County 824, Taiwan;Department of Computer Science and Information Engineering, National Taitung University, Taiwan, 684 Chunghua Road, Section 1, Taitung 950, Taiwan

  • Venue:
  • Expert Systems with Applications: An International Journal
  • Year:
  • 2008

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Abstract

We have insight into the importance of resource exploration derived from the quest for sustaining competitive advantage as well as the growth of the firm, which are well-explicated in the resources point of view. However, we really do not know when the firm will seriously commit to this kind of activities. Therefore, this study proposes an innovative approach using quantum minimization (QM) to tune a composite model comprising adaptive neuron-fuzzy inference system (ANFIS) and nonlinear generalized autoregressive conditional heteroscedasticity (NGARCH) such that it constitutes the relationship among five indicators, the growth rate of long-term investment, the firm size, the return on total asset, the return on common equity, and the return on sales. In particularly, this proposed approach outperforms several typical methods such as auto-regressive moving-average regression (ARMAX), back-propagation neural network (BPNN), or adaptive support vector regression (ASVR) for this timing problem in term of comparing their achievement and the goodness-of-fit. Consequently, the preceding methods involved in this problem truly explain the timing of resources exploration in the behavior of firm. Meanwhile, the performance summary among methods is compared quantitatively.