Does Interdependency Affect Firm and Industry Profitability ? an Empirical Test

  title={Does Interdependency Affect Firm and Industry Profitability ? an Empirical Test},
  author={Michael J. Lenox and Scott F. Rockart and Arie Y. Lewin},
Strategy researchers have argued that heterogeneity in firms’ practices and profitability within and across industries may derive from industry-level differences in the extent of interdependencies among firms’ activities. Theoretical models have clarified how and why differences in the extent of the interdependencies faced by firms across industries may affect the distributions of firm profits, but the specific predictions from these models have not been empirically tested. In this paper, we… CONTINUE READING
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