IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v69y2016i4p1307-1313.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296315005202
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jbusres.2015.10.097?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Huang, Chieh-Wei & Huarng, Kun-Huang, 2015. "Evaluating the performance of biotechnology companies by causal recipes," Journal of Business Research, Elsevier, vol. 68(4), pages 851-856.
    2. Olson, Eric M. & Slater, Stanley F. & Hult, G. Tomas M., 2005. "The importance of structure and process to strategy implementation," Business Horizons, Elsevier, vol. 48(1), pages 47-54.
    3. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    4. Yiannis E. Spanos & George Zaralis & Spyros Lioukas, 2004. "Strategy and industry effects on profitability: evidence from Greece," Strategic Management Journal, Wiley Blackwell, vol. 25(2), pages 139-165, February.
    5. Reimann, Martin & Schilke, Oliver & Thomas, Jacquelyn S., 2010. "Toward an understanding of industry commoditization: Its nature and role in evolving marketing competition," International Journal of Research in Marketing, Elsevier, vol. 27(2), pages 188-197.
    6. Ragin, Charles C., 2000. "Fuzzy-Set Social Science," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226702773, October.
    7. Michael E. Porter, 1991. "Towards a dynamic theory of strategy," Strategic Management Journal, Wiley Blackwell, vol. 12(S2), pages 95-117, December.
    8. Richard J. Arend, 2004. "The Definition of Strategic Liabilities, and their Impact on Firm Performance," Journal of Management Studies, Wiley Blackwell, vol. 41(6), pages 1003-1027, September.
    9. Stanley F. Slater & Eric M. Olson, 2000. "Strategy type and performance: the influence of sales force management," Strategic Management Journal, Wiley Blackwell, vol. 21(8), pages 813-829, August.
    10. Arend, Richard J., 2009. "Industry effects and firm effects: No effect is an island," Journal of Business Research, Elsevier, vol. 62(6), pages 651-659, June.
    11. ANITA M. McGAHAN & MICHAEL E. PORTER, 1997. "How Much Does Industry Matter, Really?," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 15-30, July.
    12. Wu, Pei-Ling & Yeh, Shih-Shuo & Huan, Tzung-Cheng (.T.C.). & Woodside, Arch G., 2014. "Applying complexity theory to deepen service dominant logic: Configural analysis of customer experience-and-outcome assessments of professional services for personal transformations," Journal of Business Research, Elsevier, vol. 67(8), pages 1647-1670.
    13. Wernerfelt, Birger & Montgomery, Cynthia A, 1988. "Tobin's q and the Importance of Focus in Firm Performance," American Economic Review, American Economic Association, vol. 78(1), pages 246-250, March.
    14. Leischnig, Alexander & Kasper-Brauer, Kati, 2015. "Employee Adaptive Behavior in Service Enactments," Journal of Business Research, Elsevier, vol. 68(2), pages 273-280.
    15. Woodside, Arch G., 2014. "Embrace•perform•model: Complexity theory, contrarian case analysis, and multiple realities," Journal of Business Research, Elsevier, vol. 67(12), pages 2495-2503.
    16. Homburg, Christian & Klarmann, Martin & Schmitt, Jens, 2010. "Brand awareness in business markets: When is it related to firm performance?," International Journal of Research in Marketing, Elsevier, vol. 27(3), pages 201-212.
    17. Leischnig, Alexander & Geigenmueller, Anja & Lohmann, Stefanie, 2014. "On the role of alliance management capability, organizational compatibility, and interaction quality in interorganizational technology transfer," Journal of Business Research, Elsevier, vol. 67(6), pages 1049-1057.
    18. Eriksen, Bo & Knudsen, Thorbjorn, 2003. "Industry and firm level interaction: Implications for profitability," Journal of Business Research, Elsevier, vol. 56(3), pages 191-199, March.
    19. Schmalensee, Richard, 1985. "Do Markets Differ Much?," American Economic Review, American Economic Association, vol. 75(3), pages 341-351, June.
    20. repec:ucp:bkecon:9780226702766 is not listed on IDEAS
    21. Richard P. Rumelt, 1991. "How much does industry matter?," Strategic Management Journal, Wiley Blackwell, vol. 12(3), pages 167-185, March.
    22. Noel Capon & John U. Farley & Scott Hoenig, 1990. "Determinants of Financial Performance: A Meta-Analysis," Management Science, INFORMS, vol. 36(10), pages 1143-1159, October.
    23. Panagopoulos, Nikolaos G. & Avlonitis, George J., 2010. "Performance implications of sales strategy: The moderating effects of leadership and environment," International Journal of Research in Marketing, Elsevier, vol. 27(1), pages 46-57.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arend, Richard J., 2009. "Industry effects and firm effects: No effect is an island," Journal of Business Research, Elsevier, vol. 62(6), pages 651-659, June.
    2. 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.
    3. Leischnig, Alexander & Henneberg, Stephan C. & Thornton, Sabrina C., 2016. "Net versus combinatory effects of firm and industry antecedents of sales growth," Journal of Business Research, Elsevier, vol. 69(9), pages 3576-3583.
    4. Camisón, César & Forés, Beatriz, 2015. "Is tourism firm competitiveness driven by different internal or external specific factors?: New empirical evidence from Spain," Tourism Management, Elsevier, vol. 48(C), pages 477-499.
    5. André Ribeiro Gonçalves & Rogério H Quintella, 2006. "The role of internal and external factors in the performance of brazilian companies and its evolution between 1990 and 2003," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 10(spe), pages 117-136.
    6. Vicente López-López & Susana Iglesias-Antelo & Esteban Fernández, 2020. "Is Sustainable Performance Explained by Firm Effect in Small Business?," Sustainability, MDPI, vol. 12(23), pages 1-13, December.
    7. Spyridon Stavropoulos & Martijn J. Burger & Dimitris Skuras, 2015. "Data Sparseness and Variance in Accounting Profitability," Tinbergen Institute Discussion Papers 15-014/VII, Tinbergen Institute.
    8. Kolias, Georgios D. & Dimelis, Sophia P. & Filios, Vasilios P., 2011. "An empirical analysis of inventory turnover behaviour in Greek retail sector: 2000-2005," International Journal of Production Economics, Elsevier, vol. 133(1), pages 143-153, September.
    9. Yi-Min Chen, 2008. "How Much Does Country Matter?," International Regional Science Review, , vol. 31(4), pages 404-435, October.
    10. Russo, Ivan & Confente, Ilenia & Gligor, David M. & Autry, Chad W., 2016. "To be or not to be (loyal): Is there a recipe for customer loyalty in the B2B context?," Journal of Business Research, Elsevier, vol. 69(2), pages 888-896.
    11. Raza, Syed Ali & Farooq, M. Shoaib & Khan, Nadeem, 2011. "Firm and industry effects on firm profitability: an empirical analysis of KSE," MPRA Paper 36797, University Library of Munich, Germany.
    12. Christmann, Petra & Day, Diana & Yip, George S., 1999. "The relative influence of country conditions, industry structure, and business strategy on multinational corporation subsidiary performance," Journal of International Management, Elsevier, vol. 5(4), pages 241-265.
    13. Eriksen, Bo & Knudsen, Thorbjorn, 2003. "Industry and firm level interaction: Implications for profitability," Journal of Business Research, Elsevier, vol. 56(3), pages 191-199, March.
    14. Alain Gilles FOKA TAGNE & Nestor Magloire LETSINA & David Claude NOUHOU NKENGANG & Aurélien FOMEKONG NOUBOSSE, 2021. "Rôle des outils de contrôle de gestion dans l’amélioration de la performance organisationnelle des entreprises au Cameroun," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 12(2), pages 103-123, December.
    15. J. Vineesh Prakash & D. K. Nauriyal, 2020. "Automotive Components Industry and Profitability Factors: Evidence from India," Vision, , vol. 25(2), pages 209-223, June.
    16. Olya, Hossein G.T. & Altinay, Levent, 2016. "Asymmetric modeling of intention to purchase tourism weather insurance and loyalty," Journal of Business Research, Elsevier, vol. 69(8), pages 2791-2800.
    17. Tarziján, Jorge & Brahm, Francisco & Daiber, Luis Felipe, 2008. "Entrepreneurial profitability and persistence: Chile versus the U.S.A," Journal of Business Research, Elsevier, vol. 61(6), pages 599-608, June.
    18. Stoelhorst, J. W. & van Raaij, Erik M., 2004. "On explaining performance differentials: Marketing and the managerial theory of the firm," Journal of Business Research, Elsevier, vol. 57(5), pages 462-477, May.
    19. Juan Carlos Bou & Albert Satorra, 2003. "The persistence of abnormal returns at industry and firm levels," Economics Working Papers 729, Department of Economics and Business, Universitat Pompeu Fabra.
    20. Florence Phua, 2006. "Predicting construction firm performance: an empirical assessment of the differential impact between industry- and firm-specific factors," Construction Management and Economics, Taylor & Francis Journals, vol. 24(3), pages 309-320.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:69:y:2016:i:4:p:1307-1313. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.