REVISITING THE FIRM, INDUSTRY, AND COUNTRY EFFECTS ON PROFITABILITY UNDER RECESSIONARY AND EXPANSION PERIODS: A MULTILEVEL ANALYSIS

• 成果类型: Article
• 署名作者: Bamiatzi, Vassiliki; Bozos, Konstantinos; Cavusgil, S. Tamer; Hult, G. Tomas M.
• 署名单位: University of Leeds; University of Leeds; University System of Georgia; Georgia State University; Michigan State University; Michigan State University's Broad College of Business
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.2422
• 发表日期: 2016
• 页码: 1448-1471
• 关键词: firm effects; Financial crisis; markets and institutions; emerging economies; hierarchical linear modeling

摘要

Research summary: Despite voluminous past research, the relevance of firm, industry, and country effects on profitability, particularly under adverse contexts, is still unclear. We reconcile institutional theory with the resource-based view and industrial organization economics to investigate the effects of economic adversity, such as the 2008 global economic crisis. Using a three-level random coefficient model, we examine 15,008 firms across 10 emerging and 10 developed countries for the 2005-2011 period. We find that firm effects become stronger under adversity, whereas industry effects become weaker, as well as country main and interaction effects, particularly among the emerging economies. These findings confirm our assumptions that the firm's own fate is, to a great extent, self-determined; a reality that is even more pronounced during periods of extreme economic hardship. Managerial summary: In this research, we examine how generalized economic adversity affects the balance across the firm-, industry-, and country-specific factors determining firm profitability. We specifically examine 15,008 firms from 10 emerging and 10 developed countries during the 2005-2011 period to investigate the effects of the 2008 global economic crisis on firm performance. We find that in such adverse conditions, the role of the industry and the country are reduced and the firm's own resources and capabilities become more pertinent for firm performance. This phenomenon is more pronounced across emerging markets. We conclude that the firm's own fate is, to a great extent, self-determined, a reality that is markedly more evident during periods of extreme economic hardship. Copyright (C) 2015 John Wiley & Sons, Ltd.