Structural change and market power in the U.S. food manufacturing sector

Stiegert, Kyle W.; Wang, Shinn-Shyr; Rogers, Richard T.

doi:10.1002/agr.20193

Cited by 15 publications

(22 citation statements)

References 25 publications

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“…(1985) conclude that high entry barriers observed in most food‐processing industries are primarily due to the cumulative effects of high expenditures on advertising and new product development. High R&D and advertising intensities are associated with high product differentiation, high entry barriers and abnormal profits (Stiegert et al. , 2009).…”

Section: Data and Variablesmentioning

confidence: 99%

“…Developments in the food economy have important implications for the cost, quality and variety of food products. Major recent developments in the US food economy include increased concentration in all stages of the agri‐food chain (Stiegert et al. , 2009), vertical integration (Dorsey and Boland, 2009) and changing business relationships among retailers, wholesalers and manufacturers (Martinez, 2007).…”

Section: Introductionmentioning

confidence: 99%

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Sources of Firm Performance Differences in the US Food Economy

Mondelli¹,

Chaddad²

2012

J Agricultural Economics

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Researchers in economics and strategy have long been interested in understanding the determinants of firm performance. We apply the relatively novel approach of hierarchical linear modelling (HLM) to a large panel of food economy firms to shed new light on the long‐standing debate about the relative importance of industry, corporate parent and business unit effects on firm profits. Our results suggest that business unit and corporate effects are more relevant than industry effects in explaining firm performance differences in the food economy. In addition, we also explore the effect of specific strategic factors on performance within each level of analysis. In particular, we find that business‐segment size, industry barriers to entry, corporate diversification, R&D intensity, capital intensity and resource availability are significant predictor variables that explain firm performance differences. Given the relatively important role of corporate effects and the positive influence of corporate strategic variables on business unit performance, our findings suggest that the environment provided by corporate parents significantly affects business unit profitability. In other words, corporate strategy does matter and thus should continue to draw attention from scholars interested in explaining profitability in the food economy.

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Section: Data and Variablesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Sources of Firm Performance Differences in the US Food Economy

Mondelli¹,

Chaddad²

2012

J Agricultural Economics

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“…The above mentioned authors have shown that this relationship can also be negative or insignificant. (2011)), while only few studies deals with the food industry Vlacllvci an Oustapassidis (1998), Stiegert et al (2009), Juhasz, et al (2008, Ahmad and Shamsudin (2008).…”

Section: Previous Researchmentioning

confidence: 99%

What Determines The Profitability of Companies: Case of Croatian Food and Beverage Industry

Pervan

Mlikota

2013

Economic Research-Ekonomska Istraživanja

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A company's profitability has always attracted the attention of academics and practitioners interested in revealing the main factors that determine business success. Although profitability has been widely investigated in manufacturing industry as a whole, studies related to the individual sectors within this industry are fairly rare. This is especially true for the food and beverage industry. Accordingly, the aim of this paper was to investigate the factors that determine companies' profitability in the Croatian food and beverage industry during the period from 1999 to 2009. The results of the conducted dynamic panel analysis revealed negative and significant influence of company's debt ratio on profitability; and significant positive influence of company's size, concentration ratio and past performance on current profitability. Additionally, MES, risk, and asset turnover had no significant role in determining profitability.Reference to this paper should be made as follows: Pervan, M.; Mlikota, M. 20B.What Determines the

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“…Such shortcomings were addressed in the recent years by simultaneous equation modelling (e.g., Kambhampati, 1996;Iwasaki et al, 2008;Stiegert et al, 2009). We construct our simultaneous SCP model following such earlier studies (subscript t − 1 indicates a lagged variable):…”

Section: Models and Estimationmentioning

confidence: 99%

“…Similarly, due to the endogeneity problem that is present in the SCP system, we follow Iwasaki et al (2008) and use a 3SLS approach to estimate the simultaneous equations. Earlier literature, such as Stiegert et al (2009), were used to select the exogenous variables. The Godfrey Lagrange multiplier test for serially correlated residuals (Godfrey, 1978) was used for both the SCP and NEIO model estimations, and the hypothesis of autocorrelation was rejected in both the models.…”

Section: Models and Estimationmentioning

confidence: 99%

Visiting an old battleground in empirical industrial organization: SCP versus NEIO

Bhuyan

2014

Applied Economics Letters

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There are two principal approaches to analysing market power -the new empirical industrial organization (NEIO) approach and the structure-conduct-performance (SCP) approach. The existing literature on market power shows that there is no unanimous agreement on which of these two methods should be used to analyse the market power. Users seem to select whichever method is best suitable to their situation, such as data availability. Here we compare these two methods of analysing market power using a single US brewing industry data set and hypothesize that both the methods would yield identical results. On the basis of the empirical results, we conclude that the debate over the use of the SCP approach versus the use of the NEIO approach to analyse market power will continue.

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Structural change and market power in the U.S. food manufacturing sector

Cited by 15 publications

References 25 publications

Sources of Firm Performance Differences in the US Food Economy

Sources of Firm Performance Differences in the US Food Economy

What Determines The Profitability of Companies: Case of Croatian Food and Beverage Industry

Visiting an old battleground in empirical industrial organization: SCP versus NEIO

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