Practice Makes Profit: Business Practices and Firm Success
AbstractWhich business practices set successful firms apart from others? We address this question using data from an official survey of almost 3,000 New Zealand firms. Questions cover: leadership, planning practices, customer and supplier focus, employee practices, quality and process monitoring, benchmarking, community and social responsibility, innovation, IT use, business structure and the competitive environment. Some of these are internal practices reflecting a firm’s resources and capabilities; some are characteristics of the external environment. We find that capital investment choices, R&D practices, market research and a range of employee practices are positively associated with firm success; industry structure is also a key determinant of success. The association between specific business practices and firm success is mostly independent of firm size, age and industrial sector, other than for export marketing.
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Bibliographic InfoPaper provided by Ministry of Economic Development, New Zealand in its series Occasional Papers with number 06/1.
Length: 37 pages
Date of creation: Mar 2006
Date of revision:
Other versions of this item:
- Richard B. Fabling & Arthur Grimes, 2007. "Practice Makes Profit: Business Practices and Firm Success," Small Business Economics, Springer, vol. 29(4), pages 383-399, December.
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
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