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Does group membership matter? Evidence from the Japanese steel industry
Author(s) -
Nair Anil,
Kotha Suresh
Publication year - 2001
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.154
Subject(s) - spurious relationship , group (periodic table) , residual , industrial organization , manufacturing sector , regression analysis , business , economics , mathematics , statistics , labour economics , chemistry , organic chemistry , algorithm
In this study we address criticism that performance differences among strategic groups found in past research may be spurious and attributable to firm effects. The Japanese steel industry provides the setting for the study. Our analysis is based on data from the carbon steel sector of the Japanese steel industry for the periods 1980–87 and 1988–93. A one‐way ANOVA indicated that the average performance of firms in the two technology‐based groups in this industry—the integrated mills and the minimills—were significantly different during the two periods. Subsequently, we performed a regression analysis to examine the residual group effect after controlling for both environment and firm‐specific effects. We found that even after controlling for both environment and firm‐specific effects group membership was significantly associated with firm performance. Copyright © 2001 John Wiley & Sons, Ltd.