The effects of industry and firm resources on profitability in the food economy
Abstract
The source of the variance in profitability among firms is an important issue in the field of food and agribusiness economics. The objective of this study is to analyze firm profitability in the food economy and determine the source of variance of firm profitability. The results indicate that firm effects account for the largest variance in business-segment performance within the food economy. Firm specific factors are less important for the vast majority of firms that are not the industry high or low performers. These results provide support that industry structure matters more for firms that are not high or low performers, which is characteristic of the majority of firms in an industry. [EconLit citations: Q130, L100.] © 2005 Wiley Periodicals, Inc. Agribusiness 21: 97-108, 2005.Download Info
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Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.
Volume (Year): 21 (2005)
Issue (Month): 1 ()
Pages: 97-108
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Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297
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- Caves, R E & Porter, M E, 1977. "From Entry Barriers to Mobility Barriers: Conjectural Decisions and Contrived Deterrence to New Competition," The Quarterly Journal of Economics, MIT Press, vol. 91(2), pages 241-61, May.
- Jean D. Kinsey, 2001. "The New Food Economy: Consumers, Farms, Pharms, and Science," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1113-1130.
- Steven T. Sonka & Michael A. Hudson, 1989. "Why agribusiness anyway?," Agribusiness, John Wiley & Sons, Ltd., vol. 5(4), pages 305-314.
Citations
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- Boland, Michael A. & Pendell, Dustin L., 2005. "Persistence of Profitability in Family-Owned Food Businesses," 2005 Annual meeting, July 24-27, Providence, RI 19216, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Schiefer, Jan & Hartmann, Monika, 2009. "Industry, firm, year, and country effects on profitability: Evidence from a large sample of EU food processing firms," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49322, Agricultural and Applied Economics Association.
- Carlos J. Trejo-Pech & Richard N. Weldon & Lisa A. House & Michael A. Gunderson, 2009. "The accrual anomaly financial problem in the food supply chain," Agribusiness, John Wiley & Sons, Ltd., vol. 25(4), pages 520-533.
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