Figure 1.
The two diagrammatic models are labelled Model 1 and Model 2. In Model 1, a box labelled Marketing investment subscript t connects by arrows to Market share subscript t, t plus 1, t plus 2, t plus 3 and to R O A subscript t, t plus 1, t plus 2, t plus 3. A box labelled Research and Development investment subscript t connects by arrows to both Market share and R O A. A vertical arrow from Research and Development investment subscript t points to the link between Marketing investment and outcomes and is labelled H 4. The arrow from Marketing investment to Market share is labelled H 3. The arrows from Research and Development investment to Market share and R O A are labelled H 1 and H 2. In Model 2, Marketing investment subscript t and Research and Development investment subscript t connect jointly to R O A subscript t plus 1. A box labelled Prior performance achievements subscript t has an upward arrow to the link between investments and R O A and is labelled H 5.Empirical models