Is The Relationship Between Market Share and Business Profitability Spurious?: An Empirical Assessment.

Prescott, John E.; Kohli, Ajay K.; Venkatraman, N.

doi:10.5465/ambpp.1984.4978186

Cited by 8 publications

(3 citation statements)

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“…In this paper, the author uses return on investment, return on sales, and cash flow on investment as measures for the firm's profitability. The firm's market share is also considered in this analysis because this variable significantly associates with a firm's profitability (Boulding and Staelin, 1990;Buzzell et al, 1975, Prescott et al, 1984. Again, standardized scores are used here.…”

Section: The Influence Of Technology and Marketing Capabilities Upon Profitabilitymentioning

confidence: 99%

Cultivating global experience curve advantage on technology and marketing capabilities

Chang

1996

International Marketing Review

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Multinationals usually face challenges of new business practices, dynamic consumer preferences, location choices for different value chain activities, and effective co‐ordination of global operations. Suggests that multinationals cultivate global experience curve advantage by improving technology and marketing capabilities for coping with rapid changes in the global marketplace. Uses the PIMS database to examine the impact of such capabilities on a firm’s performance. Indicates that companies with higher technology and marketing capabilities tend to expand into international markets earlier and to enjoy better performance. In addition, a synergy effect between technology and marketing capabilities suggests that multinationals improve both simultaneously in raising market share to a desired level. Discusses a framework for developing global experience curve advantage and presents cases illustrating how multinationals utilize their technology and marketing capabilities successfully to create competitive edge for reaching higher overall performance.

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Section: The Influence Of Technology and Marketing Capabilities Upon Profitabilitymentioning

confidence: 99%

Cultivating global experience curve advantage on technology and marketing capabilities

Chang

1996

International Marketing Review

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“…Over the years numerous studies have been carried out examining the effectiveness of strategy development processes with the primary aim of identifying reasons for superior business performance. These studies can be grouped into several categories which include: Determining the relationships that exist between organization characteristics and business performance in terms of parameters such as market share, revenue and profit margins[1, 2, 3]. Identification of approaches to strategy development and their contribution to business performance[4, 5, 6, 7].…”

Section: Introductionmentioning

confidence: 99%

“…Determining the relationships that exist between organization characteristics and business performance in terms of parameters such as market share, revenue and profit margins[1, 2, 3].…”

Section: Introductionmentioning

confidence: 99%

Competitive environments, dynamic strategy development capabilities and business performance

Feurer

Chaharbaghi²

1996

Benchmarking for Quality Management &Amp; Technology

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Outlines a survey carried out among 33 large corporations in the UK, which aimed to discover the level of dynamics in the competitive environment, the level of dynamics in strategy development and the performance of the organization. Outlines the methodology used and the results obtained. Concludes that organizations can be successful in any competitive environment but that organizations with dynamic approaches to strategy development achieve superior performance in all competitive environments.

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Business strategy, market structure and risk‐return relationships: A structural approach

Cool

Dierickx

Jemison

1989

Strategic Management Journal

173

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A structural model is proposed which integrates and extends previous findings on the interrelations between risk—return outcomes, market share, firm conduct attributes, and inter‐firm rivalry. It is argued that the relative impact of market share and firm conduct attributes on risk—return outcomes depends on the intensity of rivalry. The empirical setting is commerical banking in Indiana (1975–79). Latent variable path analysis (partial least‐squares) is used to estimate the model. The effect of market share is found to be quite important, even when possible ‘spurious’ effects due to differences in individual firm attributes are controlled for. Given consistent indications of oligopolistic coordination found in various parts of the model, it is inferred that the measured effect of market share reflects the exercise of market power.

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Is The Relationship Between Market Share and Business Profitability Spurious?: An Empirical Assessment.

Cited by 8 publications

References 0 publications

Cultivating global experience curve advantage on technology and marketing capabilities

Cultivating global experience curve advantage on technology and marketing capabilities

Competitive environments, dynamic strategy development capabilities and business performance

Business strategy, market structure and risk‐return relationships: A structural approach

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