Figure 23.--Reported changes in new-product breakeven times between two surveys (percentage of companies, normalized).
And this high CEO involvement correlates strongly and significantly at the global level, with the strongest correlates found among the North American firms, with key corporate competitive measures such as technology leadership and decreased breakeven time (both measures to be defined later).
Also related to these parameters, but of course quite different, are the "Changes in Breakeven Time" that have occurred over the past five years (Figure 23).
We examined the correlates of decreases in breakeven time and found several with statistically significant indicators.
Again, those concerned with data consistency in the study will be pleased to know that for the entire sample there are strong correlations among the responses in regard to decreased breakeven time, improved time to market, perceived R&D timeliness, meeting target dates for product/service commercialization, and meeting target dates for process implementation (albeit each of these is a separately measured concept).
But except for the previously identified possible influences on time to market and breakeven time, which do indeed seem important, the statistical analyses reveal no other important consequences from the adoption of these managerial techniques.
Since each r stops at the first [f.sub.k] at which its minimal demands are satisfied, D believes that if it continues to [f.sub.k + 1], it will only be facing those r whose breakeven times are later than [f.sub.k].
Summarizing this intuition more formally, the following strategies and beliefs form a perfect Bayesian equilibrium (PBE) in the interval [[f.sup.*], 1]: D stands firm at all times in this interval and believes at any time t [equivalent to] [f.sup.*], 1] that it is facing only those types of r whose breakeven times, [Mathematical Expression Omitted], are at least t, that is, [Mathematical Expression Omitted].
Since D stands firm at t[prime], all types of r with breakeven times of t[prime] or earlier also will stop.
First, the distribution of R's breakeven times will shift out to the right.
To see why faster transitions shift the distribution of breakeven times to the right, recall that r is just indifferent between fighting and settling peacefully at its breakeven time, which is now given by [Mathematical Expression Omitted].
Even if the distribution of R's breakeven times does not shift out, D's standing firm earlier means that fewer r are satisfied when D stands firm, and the probability of war is higher.