Journal of Management & Governance

, Volume 11, Issue 3, pp 179–213 | Cite as

A longitudinal analysis of the impact of firm resources and industry characteristics on firm-specific profitability

  • Moses Acquaah
  • Tailan Chi
Original Paper


Using a dynamic heterogeneous panel data model, we examine the relationship between firm-specific resources (corporate management capabilities, employee value-added and technological competence) and firm-specific profitability and the potential moderating effects of industry characteristics on this relationship. We find that firm-specific resources enhance both accounting-based measures (return on assets and return on sales) and market-based measure (Tobin’s q) of firm-specific performance. Moreover, industry characteristics moderate the relationship between firm-specific resources and firm-specific profitability. Managerial implications are discussed.


Resource-based view Industrial organization Evolutionary economics Economic rent Panel data analysis 



The authors have benefited greatly from the comments from and discussions with Vincent Barker III, Holly Buttner, Edward Levitas, Kevin Lowe, Paul Nystrom, and Kamil Tamiscioglu. We thank Brad Brown for generously sharing the America’s Most Admired Corporations database with us. Comments from the Associate Editor, Nicolai Foss and three anonymous reviewers are gratefully appreciated. All the remaining errors, however, are solely our responsibility. An earlier version of this paper was presented at the Annual Academy of Management (AOM) Meeting, Seattle, WA, August 2003.


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© Springer Science+Business Media, LLC 2007

Authors and Affiliations

  1. 1.Bryan School of Business and EconomicsUniversity of North Carolina at GreensboroGreensboroUSA
  2. 2.School of BusinessUniversity of KansasLawrenceUSA

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