Performance effects

Strategy researchers want to understand differences in firm performance.[1][2] For example, what can explain performance differences between Toyota’s cars business and Samsung’s mobile phones business? Studies show that just three effects account for most performance differences between such businesses: [3] the industry to which a business belongs (automotive industry vs electronics industry), the corporation it is part of (Toyota vs. Samsung), and the business itself.

  1. ^ Rumelt, R. P., Schendel, D. E., & Teece, D. J. (1994). Fundamental Issues in Strategy: A Research Agenda. Harvard Business School Press, Boston.
  2. ^ Nag, R., Hambrick, D. C., & Chen, M. J. (2007). What is strategic management, really? Inductive derivation of a consensus definition of the field. Strategic Management Journal, 28(9): 935–955. https://doi.org/10.1002/smj.615
  3. ^ Vanneste, B. S. (2017). How much do industry, corporation, and business matter, really? A meta-analysis. Strategy Science, 2(2): 121–139. https://doi.org/10.1287/stsc.2017.0029