Journal of Management & Governance

, Volume 11, Issue 3, pp 179–213

A longitudinal analysis of the impact of firm resources and industry characteristics on firm-specific profitability

Original Paper

DOI: 10.1007/s10997-007-9031-8

Cite this article as:
Acquaah, M. & Chi, T. J Manage Governance (2007) 11: 179. doi:10.1007/s10997-007-9031-8


Using a dynamic heterogeneous panel data model, we examine the relationship between firm-specific resources (corporate management capabilities, employee value-added and technological competence) and firm-specific profitability and the potential moderating effects of industry characteristics on this relationship. We find that firm-specific resources enhance both accounting-based measures (return on assets and return on sales) and market-based measure (Tobin’s q) of firm-specific performance. Moreover, industry characteristics moderate the relationship between firm-specific resources and firm-specific profitability. Managerial implications are discussed.


Resource-based viewIndustrial organizationEvolutionary economicsEconomic rentPanel data analysis

Copyright information

© Springer Science+Business Media, LLC 2007

Authors and Affiliations

  1. 1.Bryan School of Business and EconomicsUniversity of North Carolina at GreensboroGreensboroUSA
  2. 2.School of BusinessUniversity of KansasLawrenceUSA