This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Analyzing Firm Performance Heterogeneity: The Relative Effect Of Business Definition

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
N. HOUTHOOFD
S. DESMIDT ()
G. FIDALGO
Abstract

An ongoing discussion in strategic management concerns the relative impact of specific strategic decisions on firm performance. In this tradition, this research analyzes the relative impact of business domain choices on firm performance. More specific, the paper at hand (a) discusses a method to assess the relative impact of firm and business definition effects on firm performance within a specific industry, and (b) demonstrates the value of this method by measuring the effect of business definition on performance within the context of a specific SME-dominated industry, namely the Belgian electrical whole sale sector. The results indicate that firm effects explain most of the variance in four performance variables but that the impact of business definition on performance could be underestimated. It turns out, according to our findings, that business membership (and thus differences in business definition) explains about 8 percent of the variance in performance between firms within the examined industry. Consequently, managers should carefully monitor and examine the business domain they are in as it directly related with the firm’s level of performance.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.FEB.UGent.be/nl/Ondz/wp/Papers/wp_09_580.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 09/580.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 31 pages
Date of creation: Apr 2009
Date of revision:
Handle: RePEc:rug:rugwps:09/580

Contact details of provider:
Postal: Hoveniersberg 4, B-9000 Gent
Phone: ++ 32 (0) 9 264 34 61
Fax: ++ 32 (0) 9 264 35 92
Web page: http://www.feb.ugent.be/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Nathalie Verhaeghe).

Related research
Keywords: Business definition; domain choice; electrical wholesale sector; performance differences; variance decomposition;

Find related papers by JEL classification:
C00 - Mathematical and Quantitative Methods - - General - - - General
C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Estimation
C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Gomes-Casseres, Benjamin, 1997. " Alliance Strategies of Small Firms," Small Business Economics, Springer, vol. 9(1), pages 33-44, February. [Downloadable!] (restricted)
  2. Eduardo González-Fidalgo & Juan Ventura-Victoria, 2002. "How Much Do Strategic Groups Matter?," Review of Industrial Organization, Springer, vol. 21(1), pages 55-71, August. [Downloadable!] (restricted)
  3. Schmalensee, Richard, 1985. "Do Markets Differ Much?," American Economic Review, American Economic Association, vol. 75(3), pages 341-51, June. [Downloadable!] (restricted)
    Other versions:
  4. Rangone, Andrea, 1999. " A Resource-Based Approach to Strategy Analysis in Small-Medium Sized Enterprises," Small Business Economics, Springer, vol. 12(3), pages 233-48, May. [Downloadable!] (restricted)
Full references

Statistics
Access and download statistics

Did you know? Want to help out with this project? Look for volunteer opportunities.

This page was last updated on 2009-11-30.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.