Sources of performance heterogeneity in emerging economies

PURPOSE: The purpose of this paper is to explore location effects on firm performance in emerging economies simultaneously accounting for permanent and transitory country, industry, country-industry and firm-specific effects. DESIGN/METHODOLOGY/APPROACH: The authors utilize a novel methodological ap...

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Authors: Diaz Hermelo, Francisco, Hetiennot, Hernan, Vassolo, Roberto Santiago
Format: article
Status:Published version
Publication Date:2014
Country:Argentina
Institution:Consejo Nacional de Investigaciones Científicas y Técnicas
Repository:CONICET Digital (CONICET)
Language:English
OAI Identifier:oai:ri.conicet.gov.ar:11336/36308
Online Access:http://hdl.handle.net/11336/36308
Access Level:Open access
Keyword:Performance Heterogeneity
Emerging Economies
Heterogeneity
Firm Performance
Industry Effect
Hierarchical Linear Modeling
Country Effect
https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
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oai_identifier_str oai:ri.conicet.gov.ar:11336/36308
network_acronym_str AR
network_name_str Argentina
repository_id_str
spelling Sources of performance heterogeneity in emerging economiesDiaz Hermelo, FranciscoHetiennot, HernanVassolo, Roberto SantiagoPerformance HeterogeneityEmerging EconomiesHeterogeneityFirm PerformanceIndustry EffectHierarchical Linear ModelingCountry Effecthttps://purl.org/becyt/ford/5.2https://purl.org/becyt/ford/5PURPOSE: The purpose of this paper is to explore location effects on firm performance in emerging economies simultaneously accounting for permanent and transitory country, industry, country-industry and firm-specific effects. DESIGN/METHODOLOGY/APPROACH: The authors utilize a novel methodological approach: an autoregressive, cross-classified, mixed-effect linear regression model that allows them to simultaneously estimate a permanent (long-run) component, a transitory (short-run) component and the speed of decay of the transitory (autoregressive) component. FINDINGS: The authors find that the firm-specific effect is most important in explaining permanent and transitory differences. The country–industry interaction is the second most important effect, confirming that industries are not completely global and are still subject to country conditions. Broader views of the country–business context and industry conditions taken independently would be incomplete unless the country–industry interactions are considered. In other words, country matters because industry matters and vice versa. Country effects are also significant, but only transitory emphasizing the dynamic nature of emerging economies and the shortcomings that may result from considering the country business context static. Finally, the authors find that the chances of achieving sustainability of abnormal returns in emerging economies are dynamic and have significantly increased recently. ORIGINALITY/VALUE: To the authors' knowledge, this is the first to simultaneously estimate country, industry, country–industry and firm effects on the permanent and transitory components of abnormal returns in a sample of emerging economies. The study generates important evidence regarding the sources of sustainable differentiation for firms competing in emerging economies. Finally, the authors find that chances of achieving sustainability of abnormal returns in emerging economies are dynamic and have significantly increased recently.Fil: Diaz Hermelo, Francisco. Universidad Austral. Instituto de Altos Estudios; ArgentinaFil: Hetiennot, Hernan. Universidad Austral. Instituto de Altos Estudios; ArgentinaFil: Vassolo, Roberto Santiago. Universidad Austral. Instituto de Altos Estudios; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas; ArgentinaEmerald2014-09info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdfapplication/pdfhttp://hdl.handle.net/11336/36308Diaz Hermelo, Francisco; Hetiennot, Hernan; Vassolo, Roberto Santiago; Sources of performance heterogeneity in emerging economies; Emerald; Management Research; 12; 2; 9-2014; 176-2021536-5433CONICET DigitalCONICETenginfo:eu-repo/semantics/altIdentifier/url/http://www.emeraldinsight.com/doi/abs/10.1108/MRJIAM-03-2014-0544info:eu-repo/semantics/altIdentifier/doi/10.1108/MRJIAM-03-2014-0544info:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by-nc-sa/2.5/ar/reponame:CONICET Digital (CONICET)instname:Consejo Nacional de Investigaciones Científicas y Técnicas2024-05-08T14:20:28Zoai:ri.conicet.gov.ar:11336/36308instacron:CONICETInstitucionalhttp://ri.conicet.gov.ar/Organismo científico-tecnológicoNo correspondehttp://ri.conicet.gov.ar/oai/requestdasensio@conicet.gov.ar; lcarlino@conicet.gov.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:34982024-05-08 14:20:28.671CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicasfalse
dc.title.none.fl_str_mv Sources of performance heterogeneity in emerging economies
title Sources of performance heterogeneity in emerging economies
spellingShingle Sources of performance heterogeneity in emerging economies
Diaz Hermelo, Francisco
Performance Heterogeneity
Emerging Economies
Heterogeneity
Firm Performance
Industry Effect
Hierarchical Linear Modeling
Country Effect
https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
title_short Sources of performance heterogeneity in emerging economies
title_full Sources of performance heterogeneity in emerging economies
title_fullStr Sources of performance heterogeneity in emerging economies
title_full_unstemmed Sources of performance heterogeneity in emerging economies
title_sort Sources of performance heterogeneity in emerging economies
dc.creator.none.fl_str_mv Diaz Hermelo, Francisco
Hetiennot, Hernan
Vassolo, Roberto Santiago
author Diaz Hermelo, Francisco
author_facet Diaz Hermelo, Francisco
Hetiennot, Hernan
Vassolo, Roberto Santiago
author_role author
author2 Hetiennot, Hernan
Vassolo, Roberto Santiago
author2_role author
author
dc.subject.none.fl_str_mv Performance Heterogeneity
Emerging Economies
Heterogeneity
Firm Performance
Industry Effect
Hierarchical Linear Modeling
Country Effect
https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
topic Performance Heterogeneity
Emerging Economies
Heterogeneity
Firm Performance
Industry Effect
Hierarchical Linear Modeling
Country Effect
https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
description PURPOSE: The purpose of this paper is to explore location effects on firm performance in emerging economies simultaneously accounting for permanent and transitory country, industry, country-industry and firm-specific effects. DESIGN/METHODOLOGY/APPROACH: The authors utilize a novel methodological approach: an autoregressive, cross-classified, mixed-effect linear regression model that allows them to simultaneously estimate a permanent (long-run) component, a transitory (short-run) component and the speed of decay of the transitory (autoregressive) component. FINDINGS: The authors find that the firm-specific effect is most important in explaining permanent and transitory differences. The country–industry interaction is the second most important effect, confirming that industries are not completely global and are still subject to country conditions. Broader views of the country–business context and industry conditions taken independently would be incomplete unless the country–industry interactions are considered. In other words, country matters because industry matters and vice versa. Country effects are also significant, but only transitory emphasizing the dynamic nature of emerging economies and the shortcomings that may result from considering the country business context static. Finally, the authors find that the chances of achieving sustainability of abnormal returns in emerging economies are dynamic and have significantly increased recently. ORIGINALITY/VALUE: To the authors' knowledge, this is the first to simultaneously estimate country, industry, country–industry and firm effects on the permanent and transitory components of abnormal returns in a sample of emerging economies. The study generates important evidence regarding the sources of sustainable differentiation for firms competing in emerging economies. Finally, the authors find that chances of achieving sustainability of abnormal returns in emerging economies are dynamic and have significantly increased recently.
publishDate 2014
dc.date.none.fl_str_mv 2014-09
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
http://purl.org/coar/resource_type/c_6501
info:ar-repo/semantics/articulo
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/11336/36308
Diaz Hermelo, Francisco; Hetiennot, Hernan; Vassolo, Roberto Santiago; Sources of performance heterogeneity in emerging economies; Emerald; Management Research; 12; 2; 9-2014; 176-202
1536-5433
CONICET Digital
CONICET
url http://hdl.handle.net/11336/36308
identifier_str_mv Diaz Hermelo, Francisco; Hetiennot, Hernan; Vassolo, Roberto Santiago; Sources of performance heterogeneity in emerging economies; Emerald; Management Research; 12; 2; 9-2014; 176-202
1536-5433
CONICET Digital
CONICET
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/url/http://www.emeraldinsight.com/doi/abs/10.1108/MRJIAM-03-2014-0544
info:eu-repo/semantics/altIdentifier/doi/10.1108/MRJIAM-03-2014-0544
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Emerald
publisher.none.fl_str_mv Emerald
dc.source.none.fl_str_mv reponame:CONICET Digital (CONICET)
instname:Consejo Nacional de Investigaciones Científicas y Técnicas
instname_str Consejo Nacional de Investigaciones Científicas y Técnicas
reponame_str CONICET Digital (CONICET)
collection CONICET Digital (CONICET)
repository.name.fl_str_mv CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicas
repository.mail.fl_str_mv dasensio@conicet.gov.ar; lcarlino@conicet.gov.ar
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score 15.812429

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