A longitudinal analysis of the impact of firm resources and industry characteristics on firm-specific profitability
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- Acquaah, M. & Chi, T. J Manage Governance (2007) 11: 179. doi:10.1007/s10997-007-9031-8
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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.