𝔖 Bobbio Scriptorium
✦   LIBER   ✦

Does corporate strategy matter?

✍ Scribed by Edward H. Bowman; Constance E. Helfat

Publisher
John Wiley and Sons
Year
2000
Tongue
English
Weight
131 KB
Volume
22
Category
Article
ISSN
0143-2095

No coin nor oath required. For personal study only.

✦ Synopsis

A revisionist view that corporate strategy does not matter has gained considerable influence in recent years. This view largely stems from empirical results of early variance decomposition studies that found negligible corporate effects associated with profitability differences between businesses. Our analysis of the variance decomposition literature shows this view to be incorrect. Not only do the studies as a group show that factors at the corporate level of organizations contribute to profitability differences, but also evidence suggests that factors specifically associated with corporate strategy contribute to corporate effects. Corporate strategy in fact does matter.

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