Santos, Juliana and Gurgel, Cristina (2007) Does industry trajectory impact profitability? In: UNSPECIFIED.
Full text not available from this repository.Abstract
This paper analyzes the accounting profitability among a broad cross-section of firms in the World economy from 1995 to 2005 based on McGahan (2004) four trajectories of industry evolution. The purpose of the analysis is to verify propositions of each evolutionary trajectory in a World basis. Our results reveal that some theoretical propositions about firm and industry returns in each path are empirically verifiable, as the fact that industries under “Architectural” change have depressed profitability and firm’s returns in “Progressive” evolution models follow the industry patterns. We also verified that industries may face different evolution across countries and that sources of firm returns variability vary according to the environmental conditions of each course.