Heterogeneity in Firm Performance
Heterogeneity in Firm Performance

Author: Andreas Stierwald

Publisher: LAP Lambert Academic Publishing

Published: 2011-09

Total Pages: 188

ISBN-13: 9783845477077

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Firm performance is of fundamental importance in economic analysis because the prosperity of an economy ultimately depends on its productivity which, in turn, depends on the success of rms. The objective of this book is to improve the understanding of what drives rm performance. It analyzes the causes and consequences of heterogeneity in rm performance using two common indicators: productivity and pro tability. The empirical investigation employs a panel dataset that comprises 1,206 large Australian rms and covers the period from 1995 to 2005. The results in this book highlight the heterogeneity in rm performance. The evidence suggests that there are substantial and persistent di erences in performance across rms, in particular with respect to productivity and profitability. Pro tability is predominantly determined by unique and fundamental characteristics of the rm, and productivity and productivity persistence are signi cant factors among them. The lack of industry e ects suggests that heterogeneity in rm performance is not necessarily related to market failure and anti-competitive behavior. There is no strong evidence that market failures are prominent in the economy.

The Sources of Heterogeneity in Firm Performance
The Sources of Heterogeneity in Firm Performance

Author: Alessandro Arrighetti

Publisher:

Published: 2017

Total Pages: 46

ISBN-13:

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An extensive literature documents large and persistent within-industry heterogeneity of firm performance. While some authors explain such evidence in terms of factor misallocation, we provide an alternative framework that is based on the interaction among exogenous and endogenous factors. Exogenous factors, both supply and demand-related, define the opportunity set that is available to firms. Endogenous factors reflect instead firm-specific interpretations of such set, which combined with the available resources and capabilities determine firm's strategic responses that can be markedly heterogeneous. Whenever the diversity of firm conducts is associated with relatively small profit differentials, firm heterogeneity can persist. Evidence based on the evolution of labour productivity and profit dispersion in the Italian manufacturing sector between the 1990s and early 2000s provides support for our interpretative framework.

Strategic Heterogeneity and Firm Performance
Strategic Heterogeneity and Firm Performance

Author: Giovanni Battista Dagnino

Publisher:

Published: 2007

Total Pages: 0

ISBN-13:

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This paper suggests a coevolutionary analysis of the relationship between heterogeneity and firm performance advocating a more dynamic view of the development of strategic heterogeneity. Drawing on previous enquiries in behavioral and evolutionary economics of heterogeneity and performance, it proposes a conceptual framework that explains how the coevolution of strategic heterogeneity and firm performance occurs over time. Moving from some basic definitional and measurement problems of heterogeneity, we argue that heterogeneity and performance coevolve with each other through strategic (temporal and spatial) interrelatedness, circular causality and feedforward processes. Looking beyond the static vision proposed by early studies in the resource-based view of heterogeneity, the study detects two main levels of heterogeneity sources within firms and between firms: (a) the first heterogeneity level heeds to the persistence of differences in strategic behavior and performance among competitors within an industry; (b) the second heterogeneity level applies to strategic diversity within the same firm and, more precisely, to the in-house variations (i.e., resource and capability endowments and/or structural forms and profiling) that a specific firm displays between a given time t0 and the subsequent time t1. We characterize and advance taxonomy of eighteen situations that may epitomize the causal relationships between heterogeneity and performance and eventually draw a few theoretical fallouts for prospective research in strategy.

Organization Design
Organization Design

Author: John Joseph

Publisher: Emerald Group Publishing

Published: 2018-12-10

Total Pages: 354

ISBN-13: 1787563308

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Advances in Strategic Management is dedicated to communicating innovative, new research that advances theory and practice in Strategic Management. This volume focuses on organization design and collaborative ways of working.

A Heterogeneous Resource Based View for Exploring Relationships Between Firm Performance and Capabilities
A Heterogeneous Resource Based View for Exploring Relationships Between Firm Performance and Capabilities

Author: Wayne S. DeSarbo

Publisher:

Published: 2016

Total Pages: 0

ISBN-13:

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The resource-based view (RBV) of the firm has gained much attention in recent years as a means to understand how a strategic business unit obtains a sustainable competitive advantage. In this framework, several research studies have explored the relationships between resources/capabilities and firm performance. This paper seeks to extend this line of research by explicitly modeling the heterogeneity of such relations across firms in various different industries in exploring the interrelationships between capabilities and performance. A unique latent structure regression model is developed to provide a discrete representation of this heterogeneity in terms of different clusters or groups of firms who employ different paths to achieve firm performance vis-à-vis alternative capabilities. An application of the proposed methodology to a sample of 216 US firms were provided. The paper finds that the derived four group latent structure regression solution statistically dominates the one aggregate sample regression function. Substantive interpretation for the findings is provided. The paper contributes to the understanding of the performance effects of investing in capabilities in the RBV framework.

Essays on Organizational Economics and the Heterogeneity of Firm Performance
Essays on Organizational Economics and the Heterogeneity of Firm Performance

Author: Sarah Elizabeth Venables

Publisher:

Published: 2013

Total Pages: 114

ISBN-13:

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The first chapter presents a model in which a principal requires an agent to work on multiple tasks, which require varying levels of effort. Initially the appropriate actions are unknown to the principal and so he cannot monitor the agent's effort; however he may succeed in learning the game over time. I provide conditions that ensure full learning and cooperation on all tasks. If these conditions are not met, then the performance of the relationship may depend critically on the order in which tasks are first required and on whether early attempts are successful. We may therefore see variation in long-run performance amongst partnerships facing an identical environment. The second chapter considers the role that mission statements made by firms may play in influencing workers' expectations, and whether these mission statements may thereby constitute informative cheap-talk. I consider a setting in which firms send costless mission statements at the start of the game, then with positive probability have an opportunity to send a costly signal of their type at a later stage. I show that this can generate informative cheap-talk in environments in which, absent the prospect of a costly signal, cheap-talk messages would otherwise be uninformative. However firms will face a welfare trade-off between informative communication and costly signaling, and moreover may be constrained in their ability to adapt to changing circumstances. In the third chapter I present a model of relational contracting in which the principal's type determines the probability that effort generates high output, and where this type is private information. In this setting the bonus payments will be driven by the agent's beliefs, and by the principal's desire to signal her type. I show that we will expect to see higher bonus payments following a run of poor output, given the need to restore the agent's confidence. I then consider an extension in which the agent receives a signal about the performance of the principal's competitors, and so the principal will be under more pressure to "match the market". I argue that this model may explain the dynamics of bonus payments following recessions.

Board Gender Heterogeneity and Firm Performance
Board Gender Heterogeneity and Firm Performance

Author: Namrata Sen

Publisher:

Published: 2019

Total Pages:

ISBN-13:

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Is the "business case" for women applicable in today's business environment? This paper seeks to answer that question, by quantifying and analyzing the relationship between female representation on company boards and organizational financial performance. We operationalize performance through employee productivity and return on assets. We also introduce family firm status, work-life policy adoption, and turnover of employees as moderators to study the gender heterogeneity and performance relationship with those as contexts. We also study the effect of inclusion on the above relationship with the combination of the antecedent and consequent of inclusion (work-life policy, and turnover respectively). We find that board gender heterogeneity and performance are negatively correlated, and that all three moderators affect the relationship significantly. This study broadens future research scope, by assimilating findings across disparate research areas.

The Handbook of Social Capital
The Handbook of Social Capital

Author: Dario Castiglione

Publisher: OUP Oxford

Published: 2008-04-17

Total Pages: 744

ISBN-13: 9780191556579

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Social capital is a relatively new concept in the social sciences. In the last twenty or so years it has come to indicate that networks of social relationships represent a 'resource' for both the individual and society, since they provide support for the individual and facilitate collective action. Although this is not an entirely new idea, the more systematic way in which social capital captures such an intuition has created a new theoretical paradigm and helped to develop a series of innovative research programmes in politics, economics, and the study of human well-being. The concept has gained currency beyond academia, extending its influence to political and policy-making circles at local, national, and international levels. It has also affected the way in which social surveys are conceived and public policies assessed. As the idea of social capital has spread, the literature about it has increased exponentially. After twenty years of rapid expansion it is time for a more considered and critical assessment of how the original concept has been adapted and refined, and how successful its application has been. The Handbook of Social Capital intends to do precisely that. It offers a state-of-the-art view of discussions about the concept of social capital and the way in which it has been applied in empirical research. The organization of the Handbook reflects this intention by focusing on conceptual development and analysis in the first part; by identifying two main areas of research in which social capital has favoured the development of new and influential research programmes - political participation in democratic societies, and economic development; and by exploring the more normative and policy oriented consequences of social capital. All chapters comprising the volume were specifically written for the Handbook by some of the main experts in the fields. The book provides authoritative and innovative introduction to the study of social capital.