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| Author: | Eriksen, B. Knudsen, T. |
| Title: | Industry and Firm Level Interaction Implications for Profitability |
| Journal: | Journal of Business Research
2003 : MAR, VOL. 56:3, p. 191-200 |
| Index terms: | PROFITABILITY STRATEGIC MANAGEMENT COMPANIES |
| Language: | eng |
| Abstract: | One of the most important strategic management issues is to determine the ultimate source of sustained differences in profitability among competing firms. The purpose of this manuscript is to establish whether a firm-industry interaction effect is a co-determinant of firm-level profitability and thus complements the distinct industry and firm effects targeted in previous research. Industry- and firm-specific effects are analyzed on a sample of financial performance data [return on assets (ROA)] including 9809 Danish small- and medium-sized enterprises (SMEs) with 10499 employees. The results show that a firm-industry interaction effect, not explored by previous authors, is significant as a co-determinant of financial performance. |
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