Industry effects and firm effects: No effect is an island

Arend, Richard J.

doi:10.1016/j.jbusres.2008.02.002

Cited by 24 publications

(28 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Likewise, location might matter more for the growth of small firms than for the growth of large firms (Van Oort et al, 2012), while the effect of multinationality on firm performance might be contingent on the combination of the geographic scope of internalization and the firm's capabilities (Kim et al, 2014). In terms of firm diversification, it might be important to find not only attractive industries but industries in which synergies can be created (Arend, 2009;Neffke & Henning, 2013). Hence, it is pertinent to explore the interface between firm capabilities and a firm's external environment (see also Eriksen and Knudsen, 2003;Arend, 2009).…”

Section: Discussionmentioning

confidence: 99%

“…In terms of firm diversification, it might be important to find not only attractive industries but industries in which synergies can be created (Arend, 2009;Neffke & Henning, 2013). Hence, it is pertinent to explore the interface between firm capabilities and a firm's external environment (see also Eriksen and Knudsen, 2003;Arend, 2009). Such firm-environment interactions have hardly been explored, and this approach would be a fruitful way forward.…”

Section: Discussionmentioning

confidence: 99%

See 1 more Smart Citation

Data Sparseness and Variance in Accounting Profitability

2015

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Dimitris SkurasDepartment of Economics, University of Patras, 26504 Rio, Greece. E-mail: skuras@econ.upatras.gr Forthcoming in Organizational Research Methods AbstractA central question in strategic management is why some firms perform better than others. One approach to addressing this question empirically is to decompose the variance in firm-level profitability into firm, industry, location, and year components. Although it is well established that data sparseness in variance decomposition studies can lead to overestimating particular variance components, little attention has been paid to sample size requirements in strategic management studies that have examined the nature of differences in firm profitability. We conduct a meta-regression and variance decomposition study and conclude that the variation in the results from previous studies is driven-to a considerable extent-by the number of observations per group within a component. Based on these findings, we draw conclusions regarding the validity and reliability of previous variance decomposition studies and provide implications for current debates in the strategic management literature.

show abstract

Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Data Sparseness and Variance in Accounting Profitability

2015

View full text Add to dashboard Cite

show abstract

“…Recent studies (Galbreath and Galvin, 2008;Goddard et al, 2009;Arend, 2009) summarize the classic debate on the relative role of industry structure versus firm resources in explaining the variation in firm performance. While both U.S. and international data show a stronger role for firm specific factors, industry factors continue to play a significant secondary role in determining the operating performance of a firm.…”

Section: Operating Performance Of Uncovered Versus Covered Firmsmentioning

confidence: 99%

Are stocks dumped or neglected by analysts' inferior investments to covered stocks?

Lee

Sharma

Cai

2011

Journal of Business Research

View full text Add to dashboard Cite

“…To do so we have examined two population-level datasets including 10 We use the backward conditional estimation procedure in SPSS to derive these estimates. 11 Arend (2009) looks at the degree to which industry characteristics affect not only the first and second, but also the third moments of performance-in particular, how industry characteristics affect the kurtosis of the industry's profitability distribution-and suggests that syngergy between industry and firm effects is an important determinant of kurtosis.…”

Section: Conclusion and Caveatsmentioning

confidence: 99%

“…We use large, multi-industry samples and a very general measure that captures all kinds of relatedness. Our approach also allows a robust examination of the potential interactions between firm and industry effects, an important recent theme in the empirical literature on profitability (Claver, Molina, and Tarí, 2002;Eriksen and Knudsen, 2003;Arend, 2009). …”

Section: Introductionmentioning

confidence: 99%

Why There? Decomposing the Choice of Target Industry

Lien

Klein

2010

SSRN Journal

View full text Add to dashboard Cite

How do diversifying firms chose their target industries? We explore target-industry choice empirically by focusing on the relative importance of target-market characteristics and the focal firm's resources and capabilities. We avoid some key restrictions in earlier work by using a measure of relatedness that is highly general and flexible, using population-level data, and including measures of resource strength in addition to resource relevance. We find that the match between the acquiring and target firm's resources and capabilities is a much stronger predictor of diversifying entry than the attractiveness of the target market per se.

show abstract

Industry effects and firm effects: No effect is an island

Cited by 24 publications

References 37 publications

Data Sparseness and Variance in Accounting Profitability

Data Sparseness and Variance in Accounting Profitability

Are stocks dumped or neglected by analysts' inferior investments to covered stocks?

Why There? Decomposing the Choice of Target Industry

Contact Info

Product

Resources

About