Industrial targeting and firm performance: An integrated approach to industry selection

Bo-Xiang Hsu, Yi-Min Chen and Ting-Yu Yan

Technological Forecasting and Social Change, 2021, vol. 162, issue C

Abstract: Historical accounts suggest that industrial policies have been beneficial to many countries at all levels of development. This has stimulated debates in the fields of industrial policy and strategic management regarding the rationale for industrial policy and the relationship between the industrial policy and firm-level competitive advantage. However, little research has explored the issues of industry target selection. How to reasonably select target industries for industrial policy ex ante remains a quandary for policymakers and scholars. This study fills this research gap. The authors construct an integrated approach incorporating the panel unit-root method to help governments select target industries ex ante and propose that the larger the persistence of firms’ abnormal returns, the larger the industrial policy effects and the backward linkage effects. The study uses the Taiwanese automobile industry as a case study to further justify the proposed approach. The theoretical framework and empirical findings broaden the industrial targeting literature.

Keywords: Industrial targeting; Industrial policy; Firm performance; Panel unit-root test; Integrated approach (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0040162520312221
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:162:y:2021:i:c:s0040162520312221

DOI: 10.1016/j.techfore.2020.120396

Access Statistics for this article

Technological Forecasting and Social Change is currently edited by Fred Phillips

More articles in Technological Forecasting and Social Change from Elsevier
Bibliographic data for series maintained by Catherine Liu ().