Transient Industry Effects. How much are industries exposed?

Melina Moleskis (), Miguel Á. Ariño () and Miguel Canela ()
Additional contact information
Melina Moleskis: IESE Business School, Postal: IESE Business School. Research Division, Av Pearson 21, 08034 Barcelona, SPAIN, http://www.iese.edu
Miguel Á. Ariño: IESE Business School, Postal: IESE Business School. Research Division, Av Pearson 21, 08034 Barcelona, SPAIN, http://www.iese.edu
Miguel Canela: IESE Business School, Postal: IESE Business School. Research Division, Av Pearson 21, 08034 Barcelona, SPAIN, http://www.iese.edu

No D/1130, IESE Research Papers from IESE Business School

Abstract: An important factor contributing to performance heterogeneity is transient industry effects. In this paper, we explore the importance of such effects in the cava, beer and automotive sectors, using the methodology of Ariño et al. (2008). We assess the exposure of these industries to the business cycle and measure the intensity of their responsiveness. Further, the scope of our analysis includes key social and political events which may help managerial decision making. Our study draws on consumer attitudes and changing habits, as well as the effectiveness of government intervention schemes. This paper contributes to the transient industry literature by providing new insights on the importance of transient effects. The application of the transient industry effects model allows us to identify lasting changes in the relationship of an industry and the business cycle, as well as important external shocks whose impact cannot be neglected in the strategic planning and decision making by managers and policy makers.

Keywords: transient industry effects; business cycle; cava; beer; automotive (search for similar items in EconPapers)
Pages: 46 pages
Date: 2015-11-19
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Persistent link: https://EconPapers.repec.org/RePEc:ebg:iesewp:d-1130

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