IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v37y1991i8p954-959.html
   My bibliography  Save this article

Sources of Superior Performance: Market Share Versus Industry Effects in the U.S. Brewing Industry

Author

Listed:
  • Cynthia A. Montgomery

    (Harvard Business School, Boston, Massachusetts 02163)

  • Birger Wernerfelt

    (Sloan School of Management, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139)

Abstract

Using financial measures of performance we investigate the sources of value creation in the U.S. brewing industry between 1969 and 1979. We find that market share gains in this industry at this time are not correlated with changes in value and that the performance of individual leading firms is highly correlated. Our interpretation is that the success of market share building strategies depends critically on specific industry conditions. Specifically, in the absence of fundamental shifts in the relative resource positions of individual firms, share gains may come at too high a price. In addition, the research shows that intra-industry correlations in returns may result from excessive competition rather than collusion.

Suggested Citation

  • Cynthia A. Montgomery & Birger Wernerfelt, 1991. "Sources of Superior Performance: Market Share Versus Industry Effects in the U.S. Brewing Industry," Management Science, INFORMS, vol. 37(8), pages 954-959, August.
    • Handle: RePEc:inm:ormnsc:v:37:y:1991:i:8:p:954-959
    DOI: 10.1287/mnsc.37.8.954
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.37.8.954
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.37.8.954?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
    ---><---

    Citations

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


    Cited by:

    1. Wenyi Chu & Chien-Nan Chen & Chuang-Hung Wang, 2008. "The market share--profitability relationships in the securities industry," The Service Industries Journal, Taylor & Francis Journals, vol. 28(6), pages 813-826, July.
    2. Matko Koljatic & Fernando Lefort, 1999. "Market, Corporation And Business Unit Effects:What Do They Account For?," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 2(1), pages 23-50.
    3. Suárez, Fernando F., 1960- & International Center for Research on the Management of Technology., 1991. "Dominant designs and the survival of firms," Working papers 3340-91. WP (Internationa, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    4. Armstrong, J. Scott & Collopy, Fred, 1996. "Competitor Orientation: Effects of Objectives and Information on Managerial Decisions and Profitability," MPRA Paper 81676, University Library of Munich, Germany.
    5. Neil A. Morgan & Lopo Leotte Rego, 2006. "The Value of Different Customer Satisfaction and Loyalty Metrics in Predicting Business Performance," Marketing Science, INFORMS, vol. 25(5), pages 426-439, September.
    6. Paul-Valentin Ngobo & Eric Stéphany, 2001. "Les différences de performance financière entre les entreprises: résultats du marché français," Revue Finance Contrôle Stratégie, revues.org, vol. 4(1), pages 89-121, March.
    7. Karim Marini Thome & Janan Joslin Medeiros & Juciara Nunes de Alcântara, 2019. "Rescuing the Industry-Based Competition to Determine the Performance of Foreign Subsidiaries in the Brazilian Host Market," Global Business Review, International Management Institute, vol. 20(1), pages 13-24, February.
    8. Lee, Yung-Kil & Park, Jin-Woo, 2016. "Impact of a sustainable brand on improving business performance of airport enterprises: The case of Incheon International Airport," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 46-53.
    9. Yuping Zeng & Thomas J. Douglas & Changqi Wu, 2013. "The Seller's Perspective on Determinants of Acquisition Likelihood: Insights from China's Beer Industry," Journal of Management Studies, Wiley Blackwell, vol. 50(4), pages 673-698, June.
    10. JS Armstrong & Fred Collopy, 2004. "Effects of Objectives and Information on Managerial Decisions and Profitability," General Economics and Teaching 0412014, University Library of Munich, Germany.
    11. Fam, Kim-Shyan & Yang, Zhilin, 2006. "Primary influences of environmental uncertainty on promotions budget allocation and performance: A cross-country study of retail advertisers," Journal of Business Research, Elsevier, vol. 59(2), pages 259-267, February.

    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:inm:ormnsc:v:37:y:1991:i:8:p:954-959. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.