Suchergebnisse

Although the resource-based view (RBV) of the firm is one of the most accepted theories of strategic management, it has been criticized for its limited empirical support. The RBV basically predicts the relationship between the firm's resources and its performance. This study argues that it is more appropriate to measure firm performance using profit efficiency than traditional financial or accounting measures and that frontier models have great potential in empirical research on the RBV. To test this idea empirically, we used a stochastic frontier model with random coefficients to evaluate the impact of corporate reputation on profit efficiency. Finally, implications of the aforementioned focal points are discussed. JEL classification: C11, L25, M10, M20

This paper estimates profit efficiency and its determinants in small and medium-sized manufacturing enterprises in Spain. The stochastic frontier methodology and the model proposed by Battese and Coelli (1995) were used to determine the impact of the technological and environmental differences between these companies on their efficiency. The results indicate that the average profit efficiency of food SMEs is 49.37%. The results also reveal that company size, export orientation, government assistance and labour productivity are all positively related to the efficiency of food SMEs; age, however, is negatively related. Finally, the strategic implications of these findings are discussed."