This paper describes how firm characteristics evolve in different industries. In particular, it reports on relationships between industry performance and competitor diversity in the American economy from 1981 to 1997. Industry performance is measured using a prospective measure of performance (Tobin's q) and a measure of performance that reflects historical competence (accounting profitability). Competitor diversity is characterized by differences in size, operating margin, asset composition, and asset utilization. The results indicate significant diversity among competitors in both high- and low-performance industries. The study suggests that low industry performance may be associated with processes of transition in competitor characteristics.
McGahan, A.M. (2006), "Industry Performance and Changes in Competitor Characteristics: Evidence on Isolationism versus Mutual Forbearance", Baum, J.A.C., Dobrev, S.D. and Van Witteloostuijn, A. (Ed.) Ecology and Strategy (Advances in Strategic Management, Vol. 23), Emerald Group Publishing Limited, Bingley, pp. 631-666. https://doi.org/10.1016/S0742-3322(06)23019-5Download as .RIS
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