Presenting a Dynamic Model for Formulating Horizontal Strategy in Multi-Business Firms

This paper addresses the issue of horizontal strategy formulation, an essential part of corporate-level strategy, based on sharing resources among businesses. Therefore, in this study, a model was developed to evaluate the opportunities for sharing resources among businesses in order to facilitate strategic decision-making at the corporate-level. In line with the mentioned goal for designing a comprehensive model, literature was reviewed extensively and variables extracted from literature review and experience of industry experts were used to determine relationship between them in the form of dynamic approach leading to the creation of a dynamic model to evaluate sharing resources. This model includes affective factors on the process of sharing resources and their interaction that shows the dynamics of these factors over time. Model validity was done in the system dynamic approach via validation tests and computer simulations. Based on the obtained results, the validity of the model was confirmed for making decisions on resource sharing in multi-business firms.