Superior economic performance in developed and developing countries

Abstract

Purpose The extant literature on emerging economies states that the development of the institutional context contributes to the creation of hypercompetitive conditions. The purpose of this paper is to test this assertion by using data from both developing and developed countries. Design/methodology/approach The study used a probit model, Kolmogorov Smirnov tests and propensity score matching to determine the difference in persistent superior economic performance. Panel data from 600 firms in 26 different countries were used for the period from 1995 to 2011. Findings The empirical results support the proposition that there is a significant difference in superior economic performance and persistent superior economic performance sustainability between firms in developed and developing countries. Originality/value This study contributes by fostering other theories related to competitive advantages and giving special emphasis to the comparison between developed and developing countries.

Examining Economic Growth Through Brand Development: A Multinational Analysis

“…12. A similar conclusion is drawn by Ruiz et al (2017) indicating that the economic growth is possible through developing strong and valuable brands in emerging countries with developmental issues.…”

Does Business Group Affiliation Matter for Superior Performance? Evidence from Pakistan

“…The decline in the sustainability of superior profits also shows that pro-market reforms bring significant threats in addition to offering various opportunities, such as a greater availability of production factors and greater freedom to enter and operate businesses. The empirical results also supported a significant difference in the superior and sustainable economic performance among firms in developed and developing countries [67]. Increasing evidence of climate change is forcing businesses to play an active role in reducing sustainability burdens and preserving their resources for future generations [68].…”

The search for hypercompetition: evidence from a Nordic market study

“…be stationary, as a consequence of competition (Jacobsen 1988;Makadok 1998;Mueller 1986). Sustaining a competitive advantage, a firm must undertake strategies that not only generate abnormal returns, but also ensure the persistence of these (Jacobsen 1988;Ruiz, Arvate, and Xavier 2017). Under hypercompetition, lower barriers to entry, radically changing market boundaries, shorter product life cycles, and rivalry would lead to a more intense competition (Bengtsson and Powell 2004;D'Aveni 1994;Zucchini, Böhmer-Horländer, and Kretschmer 2019), which in turn would decrease the ability of firms to sustain abnormal business returns over time.…”