This study brings out the complementarities between resource‐based and industrial organization schools within strategic management through an empirical examination of firm and industry effects. A variance component analysis of 264 single‐business companies from 69 industries using 5‐ and 15‐year periods suggests that firm effects are more important than industry effects on firm performance, but not on core strategies such as technology and marketing. The findings also point to the need to study core strategies at lower levels of aggregation to understand the sources of competitive advantage. © 1998 John Wiley & Sons, Ltd.
Strategic Management Journal – Wiley
Published: Mar 1, 1998
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