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Literature, spanning industrial organization and strategic management disciplines, uses variance decomposition to understand the relative importance of firm, industry and business group effects in shaping profitability variations. Some literature analyzes firm profitability under transition to liberalization. Previous research has taken a static before-and-after view on institutional change. This paper aims to focus on the dynamic process of liberalization in India, analyzing how different institutional regime changes alter firm behavior leading to changes in profitability patterns.

Based on a panel data set of several thousand Indian firms, spanning the 26-year period between 1980-1981 and 2005-2006, the authors determine the relative importance of firm, industry and business group effects in explaining manufacturing firms’ profitability variances across different institutional phases. The authors evaluate three propositions that help assess transition dynamics between phases. They determine the quantum of catch-up or falling behind by firms.

Different industries emerge as profitability leaders, as the economy progresses through different liberalization phases. Business groups that have been more effective in resource appropriation, rent-seeking, politician management and non-market activities in a controlled regime are replaced as profit leaders by those that, in a free-market economy, can be capable of intra-business resource allocation tasks and leveraging corporate capabilities.

The approach demonstrates how to analyze the underlying detailed structure of firm-level data, and performance outcomes, to derive nuanced interpretation of factors giving rise to the effects that explain profitability variances, and how to assess the way these effects behave over time. The dynamic evidence-based approach highlights what factors matter, where, when and why, in influencing profitability variances, which are a key dimension of industrial and economic performance.

An ongoing discussion in strategic management concerns the relative impact of specific strategic decisions on firm performance. In line with that tradition, this research seeks to analyze the relative impact of business domain choices on firm performance. More specifically, it aims to discuss a method of assessing the relative impact of firm and business domain effects on firm performance within a specific industry and to demonstrate the value of this method.

First, a model was developed to estimate the relative impact of firm versus business domain on performance. Second, all members of a specific SME‐dominated industry, namely the Belgian electrical wholesale sector, were questioned in order to test the validity of the developed model.

The results indicate that: the firms in the analyzed industry operate within two distinct business domains; and business domain effects explain from 6.8 percent to 9.7 percent of the variance in the included performance variables.

The findings should urge managers to carefully (re)consider where they are competing and assess the relative performance impact of business domain choices within their industry.

It is widely agreed that industry membership has performance implications. The effect of industry membership considers performance variation between industries. This, however, is one of the first studies to further analyze performance heterogeneity within an industry by considering the relative effect of business domain choices.

The purpose of this paper is to present a review of variance decomposition studies of firm performance and the theoretical foundations that served as the antecedents and promptings for this stream of research. Known collectively as “variance decomposition literature,” these studies use variance decomposition techniques to partition firm performance into various classes of effects in a bid to unveil the relative importance of factors responsible for firm performance variance.

A review of papers published in SCOPUS and institute for scientific information indexed journals was conducted.

The study found that firm, industry, corporate, business group and country effects are the major effects included in most extant studies. However, of all effects, firm effects remain the dominant and most important impact on firm performance. The effects that affect firm performance are also interdependent.

Consequently, the decisions of managers in firms are still the most important element in helping the firm to navigate industry and contextual factors, especially during periods of recession.

From the review, research gaps were identified and suggestions for future research provided. There is still much to learn from variance decomposition literature in an age of new business models, unprecedented start-up firms and from developing and emerging market countries.

This paper aims to study the corporate governance practices followed by the listed companies in India to find out if industry and business group affiliation of firms influence their corporate governance practices.

The authors have created a corporate governance index for India using 15 of the variables used in past research. Hierarchical regression has been used in the study to control for possible inter-firm correlation in governance scores.

Using principal component analysis, the authors derive five factors for the corporate governance index – board composition, shareholder responsibility, ownership, responsible board behavior and fair executive compensation. Using the random intercept mixed-effects model, the authors find that corporate governance behaviors of firms affiliated to business groups are more similar within business groups than within industries.

Regulatory authorities generally target individual firms to enforce good corporate governance practices. As companies affiliated with the same business group exhibit similar governance practices, regulators can also set norms for business groups in addition to individual firms.

Scant research has studied the corporate governance behavior of firms affiliated with business groups. By making business groups (and industries) the unit of analysis, the authors have studied the corporate governance behavior of firms as a cluster in the context of an emerging country, India.

This paper seeks to investigate the link between business strategy and performance, giving special attention to the composition of combination strategies.

A survey assessing business strategy and performance was completed by managers representing 277 retail businesses in the USA.

The combination strategy was associated with higher performance in some but not all instances. Strategic clarity – the extent to which a single strategy reflects the organization's strategic intent – was also associated with organizational performance. Businesses with high and low strategic clarity outperformed those with moderate strategic clarity.

This paper investigated US retailers and did not assess businesses in other industries or countries. Future research that seeks to replicate these findings is warranted.

Businesses can pursue either a single generic strategy (i.e. low cost or differentiation, prospector or defender or analyzer, etc.) or attempt to combine two or more strategies. Porter and others have warned that a combination strategy is suboptimal because of trade‐offs inherent in “pure” strategies. While some businesses have pursued a combination strategy and performed poorly, others have done so with great success. Evidence presented in the paper attempts to resolve this conundrum, suggesting that high‐performing businesses either concentrate on a single strategy along the Miles and Snow typology or combine all three equally. Those attempting intermediate combinations are more likely to perform poorly.

The paper proposes the notion of strategic clarity and provides evidence that supports a U‐shaped link between strategic clarity and business performance.

This paper aims to assess the influence of strategic capabilities on the business strategy‐performance relationship among retail businesses in Argentina, Peru, and the USA.

Zahra and Covin's self‐reported scale was amended and utilized to categorize businesses along Porter's typology. Strategic capability scales were adopted from DeSarbo and associates. Self‐reporting scales to assess relative competitive and objective performance in the present study were adopted from Ramanujam and Venkatraman. A survey containing these scales was administered to 277 attendees at a retail trade show in the USA. The survey – translated into Spanish – was distributed by mail and completed by 136 retailers in Peru and 163 retailers in Argentina.

Links were assessed among strategic capabilities, generic business strategies, and performance in retail businesses in Argentina, Peru and the USA. Support was found for links between the focus strategy and both marketing and linking capabilities, between the differentiation strategy and technology capabilities, and between the cost leadership strategy and management capabilities. The low cost‐differentiation combination strategy was associated with high performance in strategic groups whose businesses possess strong management and technology capabilities. These findings highlight the importance of developing strategy‐specific capabilities as a foundation for superior performance.

This study relied on self‐reported assessments of competitive strategy, organizational capabilities, and performance. It utilized cluster analysis, assessed only retailers, and considered only three nations.

Extant strategic group research highlights the link between group membership and firm performance. The present study reinforces previous research. In addition, the presence of organization‐specific strategic capabilities helps to explain why some businesses outperform others in the same strategic group.

This paper aims to discuss multilevel modeling for longitudinal data, clarifying the circumstances in which they can be used.

The authors estimate three-level models with repeated measures, offering conditions for their correct interpretation.

From the concepts and techniques presented, the authors can propose models, in which it is possible to identify the fixed and random effects on the dependent variable, understand the variance decomposition of multilevel random effects, test alternative covariance structures to account for heteroskedasticity and calculate and interpret the intraclass correlations of each analysis level.

Understanding how nested data structures and data with repeated measures work enables researchers and managers to define several types of constructs from which multilevel models can be used.

The purpose of this study is to examine corporate disclosure of stakeholder-oriented actions on Twitter in response to COVID-19 during the pandemic outbreak and to empirically investigate whetherfirms’ social performance and their financial resilience impact on their engagement in, and communication of, stakeholder-oriented COVID-19 actions.

This study scrapes a sample of tweets communicated by major global listed firms between March 1, 2020 and April 30, 2020 and identifies disclosures that mention firm engagement in stakeholder-oriented actions in response to the COVID-19 pandemic. Cross-sectional regression analysis is used to examine the relationship between firms’ social performance and the number of tweets they post about stakeholder-oriented COVID-19 actions. Further, firms’ financial resilience is examined as a moderating factor of this relationship.

The results show that firms with better social performance are more likely to engage in and, hence, communicate stakeholder-oriented actions for the COVID-19 pandemic on Twitter. Moreover, it is evident that firms with better social performance communicate more stakeholder-oriented actions only when they belong to industries that have not been severely impacted by the pandemic.

This study has two important contributions. First, this study provides contemporary evidence of corporate disclosure of firms and their stakeholder-oriented actions on Twitter in response to the COVID-19 pandemic during the initial outbreak period. Second, it reveals insights into what characteristics drive firms to engage in costly corporate social responsibility (CSR) activities, and promote them on social media, in a period characterized by high economic uncertainty.

One of the adverse effects of COVID-19 is on poor economic and financial performance. Such economic underperformance, less demand from the consumer side and supply chain disruption is leading to stock market volatility. In such a backdrop, this paper aims to find the impact of COVID-19 on the Indian stock market by analyzing the analyst’s report.

The sample includes a cross-sectional data set on selected Indian firms that are indexed in BSE 100. The authors calculate the score of disclosure tone by using a textual analysis tool based on the analyst report of selected BSE 100 firms' approach in tackling COVID-19’s impact. The relationship between the tone of the analyst report and stock market performance is examined. This empirical model also survives robustness analysis to establish the consistency of the findings. This study uses both frequentist statistics and Bayesian statistics approach.

The empirical result shows that tone has negative and significant influence on stock market performance. This study indicates that either analysts are not providing value-relevant and incremental information, which can reduce the stock market volatility during this pandemic situation or investors are not able to recognize the optimism of the information.

This study provides an interesting insight regarding retail investors' stock purchasing behavior during the crisis period. Hence, this study also lays out crucial managerial implications that can be followed by preparers while preparing corporate disclosure.

In the concern on pandemic and its impact on the stock market, this study sheds light on investors' preferences during the crisis period. This study uniquely focuses on analyst reports and investors' preference which has not been studied widely. To the best of the authors’ knowledge, this is the first study in the Indian context, which aims to understand retail investors’ investment preferences during a pandemic.

Providing health care services requires collaboration between several occupations. This study aimed to reveal how three occupational groups (nurses, physicians, and administrators) perceive human resources management practices (HRMP) and whether these practices are differently associated with trust in the clinic manager.

The study included 290 employees from 29 primary care clinics, all affiliated with a health care organisation that operates in the public sector. Self-reporting questionnaires measured participants’ perceptions of six HRMP across occupations and their association with trust in the clinic manager. Variation between occupational groups was analysed through one-way analysis of variance (for groups’ perceptions of HRMP and trust in manager) and t-tests (for the association between perceived HRMP and trust in manager).

The results indicate some differences in perceived HRMP and trust across groups. Also, some differences were found across occupations regarding the relationship between HRMP and trust in the clinic manager: Nurses’ perceptions significantly differed from those of physicians and administrators, yet there was no significant difference between the two latter groups.

Health care organisations should expand their human resources architecture and customise their HRMP for each occupational group based on that group’s perceptions of the workplace. This can nurture trust in managers and create a climate for trust as a mechanism that encourages employees from distinct occupational groups to work together for the benefit of their clinic, organisation, and patients.

This study contributes to the discussion about the contextualisation of HRMP, providing insights regarding perceptions of HRMP as an enabler of an organisation’s strategy.