Antecedents of firm performance in emerging economies: Business groups, strategy, industry structure, and state support

Abstract

A rich literature has investigated the antecedents of firm performance in developed economies, resulting in a consensus view that firm resources and strategy are the key determinants. Several arguments, however, suggest that in emerging economies other factors are more important for firm performance. This study analyzes the impact of firm strategy and industry structure as well as business group membership and state support on firm performance in an advanced emerging economy, Turkey. Using a data set compiled from a selection of the 1,000 largest manufacturing firms in this country, the study employs several regression models to identify the main determinants of firm performance as measured by productivity and net profit margin. In contrast to studies of developed economies, the investigation finds that firm-related factors (competitive strategies) do not significantly influence performance; instead factors related to industry structure and business group membership are the strongest determinants of firm performance; further, state support interacts with business group membership and is positively related to productivity.

Organizational culture, strategic planning and performance: empirical evidence from organizations in Malaysia

“…Moreover, Samad et al [7] suggested that: (i) vision, mission, and goals in formulation strategy, and (ii) structure, strategy, and human resource aspects in implementation strategy, are profoundly related to the performance of organizations. A study by Karabag & Berggren [8], supported the influence of these strategies on organizational performance. Empirical evidence indicated that strategic planning appears as a practice to help improve the performance of non-profit organizational.…”

“…Even though abundant studies have been undertaken on this topic but the findings are inconclusive [8]. The mixed findings were due to several reasons.…”

Quantitative Assessment of the Industrial Composition in the Country’s Regions

“…It has been unambiguously agreed that economic development is the basis for the development of a country's region because it affects social (first of all, employment) and other problems being resolved (Boggia & Cortina, 2010;Karabaga & Berggren, 2014;Kondyli, 2010;Silva & Ferreira-Lopes, 2014;Wu & Tam, 2015). In turn, the basis of the economic development lies in the industry.…”

The Relationship between Corporate Profitability and Macroeconomic Indicators: Evidence from 500 Largest Industrial Organizations in Turkey

“…In other studies, various other indicators were observed. Sector impacts, sector concentration, product differentiation and stage of life cycle (Caloghirou, Protogerou, Spanos, & Papagiannakis, 2004); ownership structures, size, degrees of diversification and geographical location (Guerrini, Romano, & Campedelli, 2011); country effects (Goldszmidt, Brito, & de Vasconcelos, 2011); differences of government, trade policies, technology levels, internal competition and culture (Ketelhöhn & Quintanilla, 2012); firm strategy and the industry structure (Karabag & Berggren, 2014); market power and more efficient operation (Canarella, Miller, & Nourayi, 2013); lagged profitability, growth, productivity, firm age and industry affiliation (Yazdanfar, 2013) were used as indicators to explain the relationship with corporate profitability.…”