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The effects of industry and firm resources on profitability in the food economy

Sara Schumacher and Michael Boland
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Sara Schumacher: Conduit Internet Technologies, 2013 Sandy Drive, Suite 201, State College, PA 16803, Postal: Conduit Internet Technologies, 2013 Sandy Drive, Suite 201, State College, PA 16803

Agribusiness, 2005, vol. 21, issue 1, 97-108

Abstract: The source of the variance in profitability among firms is an important issue in the field of food and agribusiness economics. The objective of this study is to analyze firm profitability in the food economy and determine the source of variance of firm profitability. The results indicate that firm effects account for the largest variance in business-segment performance within the food economy. Firm specific factors are less important for the vast majority of firms that are not the industry high or low performers. These results provide support that industry structure matters more for firms that are not high or low performers, which is characteristic of the majority of firms in an industry. [EconLit citations: Q130, L100.] © 2005 Wiley Periodicals, Inc. Agribusiness 21: 97-108, 2005.

Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:21:y:2005:i:1:p:97-108

DOI: 10.1002/agr.20033

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