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The persistence of efficiency

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The persistence of efficiency. / Johnes, Geraint; Johnes, Jill.

In: Expert Systems with Applications, Vol. 40, No. 14, 15.10.2013, p. 5661-5672.

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Harvard

Johnes, G & Johnes, J 2013, 'The persistence of efficiency', Expert Systems with Applications, vol. 40, no. 14, pp. 5661-5672. https://doi.org/10.1016/j.eswa.2013.05.014

APA

Johnes, G., & Johnes, J. (2013). The persistence of efficiency. Expert Systems with Applications, 40(14), 5661-5672. https://doi.org/10.1016/j.eswa.2013.05.014

Vancouver

Johnes G, Johnes J. The persistence of efficiency. Expert Systems with Applications. 2013 Oct 15;40(14):5661-5672. Epub 2013 May 9. doi: 10.1016/j.eswa.2013.05.014

Author

Johnes, Geraint ; Johnes, Jill. / The persistence of efficiency. In: Expert Systems with Applications. 2013 ; Vol. 40, No. 14. pp. 5661-5672.

Bibtex

@article{f84886cd0d0f42b78bb90b2ba3e8c33f,
title = "The persistence of efficiency",
abstract = "Profits can persist in the resource-based view (RBV) of the firm because of heterogeneity of inputs combined with resource immobility. The firm-efficiency interpretation of the RBV posits that heterogeneity in, for example, technology or know-how, leads to inter-firm efficiency differences which can persist because of imperfect imitability. Thus the persistence of efficiency leads to the persistence of profitability. There has been no empirical research into the firm-efficiency view, and this paper therefore fills that gap by utilizing a panel of 4280 firms in the manufacturing sector over the period 1983-2003. Efficiency scores are derived using data envelopment analysis (DEA) and these are then modelled in a random parameter framework where one determinant of current period efficiency is the firm's own lagged efficiency. The estimated coefficient of efficiency persistence is found to be around 0.7, thereby offering support for the firm-efficiency view, and this varies by country and by industry.",
keywords = "Resource-based view, Firm efficiency , Frontier methods , Business strategy , Manufacturing sector",
author = "Geraint Johnes and Jill Johnes",
year = "2013",
month = oct,
day = "15",
doi = "10.1016/j.eswa.2013.05.014",
language = "English",
volume = "40",
pages = "5661--5672",
journal = "Expert Systems with Applications",
issn = "0957-4174",
publisher = "Elsevier Ltd",
number = "14",

}

RIS

TY - JOUR

T1 - The persistence of efficiency

AU - Johnes, Geraint

AU - Johnes, Jill

PY - 2013/10/15

Y1 - 2013/10/15

N2 - Profits can persist in the resource-based view (RBV) of the firm because of heterogeneity of inputs combined with resource immobility. The firm-efficiency interpretation of the RBV posits that heterogeneity in, for example, technology or know-how, leads to inter-firm efficiency differences which can persist because of imperfect imitability. Thus the persistence of efficiency leads to the persistence of profitability. There has been no empirical research into the firm-efficiency view, and this paper therefore fills that gap by utilizing a panel of 4280 firms in the manufacturing sector over the period 1983-2003. Efficiency scores are derived using data envelopment analysis (DEA) and these are then modelled in a random parameter framework where one determinant of current period efficiency is the firm's own lagged efficiency. The estimated coefficient of efficiency persistence is found to be around 0.7, thereby offering support for the firm-efficiency view, and this varies by country and by industry.

AB - Profits can persist in the resource-based view (RBV) of the firm because of heterogeneity of inputs combined with resource immobility. The firm-efficiency interpretation of the RBV posits that heterogeneity in, for example, technology or know-how, leads to inter-firm efficiency differences which can persist because of imperfect imitability. Thus the persistence of efficiency leads to the persistence of profitability. There has been no empirical research into the firm-efficiency view, and this paper therefore fills that gap by utilizing a panel of 4280 firms in the manufacturing sector over the period 1983-2003. Efficiency scores are derived using data envelopment analysis (DEA) and these are then modelled in a random parameter framework where one determinant of current period efficiency is the firm's own lagged efficiency. The estimated coefficient of efficiency persistence is found to be around 0.7, thereby offering support for the firm-efficiency view, and this varies by country and by industry.

KW - Resource-based view

KW - Firm efficiency

KW - Frontier methods

KW - Business strategy

KW - Manufacturing sector

U2 - 10.1016/j.eswa.2013.05.014

DO - 10.1016/j.eswa.2013.05.014

M3 - Journal article

VL - 40

SP - 5661

EP - 5672

JO - Expert Systems with Applications

JF - Expert Systems with Applications

SN - 0957-4174

IS - 14

ER -