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Same as it ever was, really? An empirical study on the sustainability of superior performance of public companies in the US and in Europe from 1987 to 2007

Author

Listed:
  • Boris Durisin

    (Management Department, Bocconi University, Milan, Italy)

  • Riccardo Lizzola

    (Bocconi University, Milan, Italy)

Abstract

Theorizing on hypercompetition and temporary advantages calls for developing theory and empirical evidence about whether and why competitive advantages may be becoming less sustainable. Our study attempts to contribute to such an endeavour by examining 1319 firms in United States and 700 firms in some European countries for the period 1987 to 2007. In the last twenty years, growth rather than margins, industry, market share and size has exhibited most influence in explaining total shareholder return in the United States and in Europe. Sustainability of superior performance is not found neither in the United States nor in Europe. In addition, the results show a pervasive increase in volatility and rank order fluctuation both at the firm and the industry level. It is not that what managers face today is the same as it ever was. Theorizing on margin-based rents and in turn the value of the ideas of their proponents face a lack of empirical support.

Suggested Citation

  • Boris Durisin & Riccardo Lizzola, 2009. "Same as it ever was, really? An empirical study on the sustainability of superior performance of public companies in the US and in Europe from 1987 to 2007," KITeS Working Papers 011, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised 2009.
    • Handle: RePEc:cri:cespri:kites11_wp
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    References listed on IDEAS

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