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How to sell in diverse markets? A two-level approach to industry factors and selling factors for explaining firm profitability

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  • Leischnig, Alexander
  • Kasper-Brauer, Kati

Abstract

Literature reveals continuous interest in explanations for differences in firm performance. This article aims to contribute to the existing body of literature by adopting a two-level perspective of industry and firm factors as causal conditions to explain firm profitability. This article illustrates a two-step fuzzy set Qualitative Comparative Analysis (fsQCA) and shows how certain proximate conditions (i.e., selling approaches) can bring about an outcome (i.e., profitability) in a given context of remote conditions (i.e., industry factors). The findings of the two-step fsQCA point to alternative profitability-enhancing industry contexts. In addition, the findings of this study indicate combinations of selling approaches within these contexts that jointly lead to profitability. Knowledge about these configurations contributes to a deeper understanding of context-dependency and helps managers develop selling strategies to increase profitability in diverse settings. From a methodological point of view, the stepwise fsQCA helps address limited diversity which presents a major challenge in many QCA studies.

Suggested Citation

  • Leischnig, Alexander & Kasper-Brauer, Kati, 2016. "How to sell in diverse markets? A two-level approach to industry factors and selling factors for explaining firm profitability," Journal of Business Research, Elsevier, vol. 69(4), pages 1307-1313.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:4:p:1307-1313
    DOI: 10.1016/j.jbusres.2015.10.097
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    Cited by:

    1. Sascha Kraus & Domingo Ribeiro-Soriano & Miriam Schüssler, 2018. "Fuzzy-set qualitative comparative analysis (fsQCA) in entrepreneurship and innovation research – the rise of a method," International Entrepreneurship and Management Journal, Springer, vol. 14(1), pages 15-33, March.
    2. Dahms, Sven, 2019. "Foreign-owned subsidiary knowledge sourcing: The role of location and expatriates," Journal of Business Research, Elsevier, vol. 105(C), pages 178-188.
    3. Khan, Asad & Rezaei, Sajad & Valaei, Naser, 2022. "Social commerce advertising avoidance and shopping cart abandonment: A fs/QCA analysis of German consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).

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