The relative influence of industry and corporation on business segment performance: an alternative estimate

The relative influence of industry and corporation on business segment performance: an alternative estimate

Rumelt's (1991) widely cited paper presents estimates of the relative influence of industry, corporate, business unit, and other influences on business unit profitability. He finds corporations explain almost none of the variability in business unit profitability. Using a simultaneous equation...

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Veröffentlicht in:Strategic management journal 1999-06, Vol.20 (6), p.519-547
Hauptverfasser: Brush, Thomas H., Bromiley, Philip, Hendrickx, Margaretha
Format: Artikel
Sprache:eng
Schlagworte:
Applied sciences
Business structures
business unit performance
Coefficients
Continuous variables
Corporate strategies
Corporations
Departments
Dependent variables
diversification
Economic analysis
Enterprises
Estimates
Exact sciences and technology
Financial performance
Firm modelling
Group influence
Individual performance
Industry
Influence
Labour influences
Market shares
Mathematical independent variables
Mathematical models
methodology
Null hypothesis
Operational research and scientific management
Operational research. Management science
Productivity
Profit
Profitability
Rationing
Return on assets
Statistical variance
Studies
Variables
Variance analysis
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Zusammenfassung:Rumelt's (1991) widely cited paper presents estimates of the relative influence of industry, corporate, business unit, and other influences on business unit profitability. He finds corporations explain almost none of the variability in business unit profitability. Using a simultaneous equation model, we provide alternative estimates of the influence of industry and corporation on business unit performance. We find that both corporations and industries influence business unit profitability but corporations have the larger influence.
ISSN:0143-2095
1097-0266
DOI:10.1002/(SICI)1097-0266(199906)20:6<519::AID-SMJ32>3.0.CO;2-8