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Explicando La Rentabilidad De La Empresa Y Su Sustentación

Author

Listed:
  • JORGE TARZIJÁN M

    (Escuela de Administración, Pontificia Universidad Católica de Chile)

  • FRANCISCO BRAHM M.
  • LUIS FELIPE DAIBER R.

Abstract

This article reviews the literature on the sources of business performance, persistence and sustainability through time, emphasizing the analysis of empirical studies. We also analyze recent literature that focuses on the importance of geographic location for business performance. Since the answers to these inquiries are keystones for strategic management, there is an ongoing debate regarding these topics. Results of this review show that the competitive advantages are more important than industry attractiveness and corporation effects for explaining business performance, and that geographic location matters. However, we can not generalize these conclusions, since they may be different for certain industries and countries. Moreover, we observe a degree of persistence in business profitability, although the gap between high and low performers tends to decrease through time. This last result indicates that competitive advantages are only partial sustainable.

Suggested Citation

  • Jorge Tarziján M & Francisco Brahm M. & Luis Felipe Daiber R., 2005. "Explicando La Rentabilidad De La Empresa Y Su Sustentación," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 8(1), pages 25-54.
    • Handle: RePEc:pch:abante:v:8:y:2005:i:1:p:25-54
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    More about this item

    Keywords

    Profitability determinants; Persistence; Sustainability; Strategy;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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