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Industry-Versus Firm-specific Effects on Performance:: Contrasting SMEs and Large-sized Firms


  • Caloghirou, Yiannis
  • Protogerou, Aimilia
  • Spanos, Yiannis
  • Papagiannakis, Lefteris


The present study contrasts the impact of industry- and firm-specific factors on the profitability of business firms using survey and census data on a sample of Greek manufacturing firms. Industry effects are represented using industry concentration, product differentiation, and stage of life cycle. Firm factors include assets and dynamic capabilities. These assets are related to marketing, production, technology, and finance. While dynamic capabilities are related to the managerial processes of coordination/integration, learning, and the capacity to change. The results obtained provide strong evidence that firm factors exert a much stronger impact than industry, in both SMEs and large enterprises. The results also offer important insights on the differential impact of specific determinants of profitability between SMEs and large firms.

Suggested Citation

  • Caloghirou, Yiannis & Protogerou, Aimilia & Spanos, Yiannis & Papagiannakis, Lefteris, 2004. "Industry-Versus Firm-specific Effects on Performance:: Contrasting SMEs and Large-sized Firms," European Management Journal, Elsevier, vol. 22(2), pages 231-243, April.
  • Handle: RePEc:eee:eurman:v:22:y:2004:i:2:p:231-243

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    Cited by:

    1. Hung Woan Ting & Bala Ramasamy & Lee Chew Ging, 2010. "Management systems and the CSR engagement," Social Responsibility Journal, Emerald Group Publishing, vol. 6(3), pages 362-373, August.
    2. Hao Jiao & Ilan Alon & Yu Cui, 2011. "Environmental dynamism, innovation, and dynamic capabilities: the case of China," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing, vol. 5(2), pages 131-144, April.
    3. Shun-Jen Hsueh & Hsin-Hong Kang, 2007. "Cointegration relationships of strategy variables among firms within strategic groups," Asia Pacific Journal of Management, Springer, vol. 24(1), pages 61-73, March.
    4. Raza, Syed Ali & Farooq, M. Shoaib & Khan, Nadeem, 2011. "Firm and industry effects on firm profitability: an empirical analysis of KSE," MPRA Paper 36797, University Library of Munich, Germany.
    5. Goddard, John & Tavakoli, Manouche & Wilson, John O.S., 2009. "Sources of variation in firm profitability and growth," Journal of Business Research, Elsevier, vol. 62(4), pages 495-508, April.
    6. Baldi, Guido & Sadovskis, Vairis & Šipilova, Viktorija, 2014. "Economic and Employment Effects of Microloans in a Transition Country," MPRA Paper 52736, University Library of Munich, Germany.
    7. Visinescu, Sorin & Micuda, Dan, 2011. "Romanian SME’s sector trough crisis: the effectiveness of government policies and the present situation," MPRA Paper 30618, University Library of Munich, Germany.
    8. Boris Durisin & Riccardo Lizzola, 2009. "Same as it ever was, really? An empirical study on the sustainability of superior performance of public companies in the US and in Europe from 1987 to 2007," KITeS Working Papers 011, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised 2009.
    9. repec:ibn:ibrjnl:v:10:y:2017:i:9:p:87-95 is not listed on IDEAS
    10. repec:seg:012016:v:2:y:2017:i:3:p:1-11 is not listed on IDEAS
    11. Nelson Duarte, 2013. "Entrepreneurship and Local Sustainability: Is There any Relation? A Case Study in the Region Vale do Sousa," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 93-116.
    12. repec:pjm:journl:v:xxiii:y:2018:i:1:p:25-48 is not listed on IDEAS
    13. Julia, 2011. "About some difficulties with interpreting and measuring corporate performance," Bank i Kredyt, Narodowy Bank Polski, vol. 42(5), pages 41-60.
    14. Claudimar Pereira da Veiga & Cassia Rita Pereira da Veiga & Mônica Maier Giacomini & Heitor Takashi Kato & Jansen Maia Del Corso, 2015. "Evolution of Capabilities in the Discovery Cycle of an Innovation in the Pharmaceutical Market," International Review of Management and Marketing, Econjournals, vol. 5(3), pages 141-153.
    15. Wahyudi, Imam, 2012. "Environmental Dynamic, Business Strategy, and Financial Performance: An Empirical Study of Indonesian Property and Real Estate Industry," MPRA Paper 59717, University Library of Munich, Germany, revised 08 Apr 2013.
    16. Stav Fainshmidt & Amir Pezeshkan & M. Lance Frazier & Anil Nair & Edward Markowski, 2016. "Dynamic Capabilities and Organizational Performance: A Meta-Analytic Evaluation and Extension," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1348-1380, December.


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