Determinants of industry performance: region vs. country effects in knowledge-intensive service industries

Yi-Min Chen

The Service Industries Journal, 2007, vol. 29, issue 3, 297-316

Abstract: Recent variance decomposition studies have started trying to determine the relative importance of industry and firm on profitability, but little research has been done to investigate exactly how much the difference in regions and countries could explain the variation in industry performance. This study explores the sources of knowledge-intensive service industry performance by comparing the relative importance of region, country, and industry effects. Using a variance components model fitted to a new data set, we find that while the country effects dominate industry performance around the world and in all regions (North America, South America, West Europe, East Europe, and Asia), industry effects too play a role in developing the worldwide knowledge-intensive service industries. We also find that regional effects have little significant influence on industry performance.

Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:taf:servic:v:29:y:2007:i:3:p:297-316

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DOI: 10.1080/02642060701846754

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The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

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