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Int. J. Financial Stud. 2018, 6(1), 4; https://doi.org/10.3390/ijfs6010004

The Influence of Industry Characteristics and Dynamic Capabilities on Firms’ Profitability

1
Faculty of Economics, University of Split, Cvite Fiskovića 5, 21000 Split, Croatia
2
University Department of Professional Studies, University of Split, Kopilica 5, 21000 Split, Croatia
*
Author to whom correspondence should be addressed.
Received: 28 September 2017 / Revised: 17 November 2017 / Accepted: 13 December 2017 / Published: 27 December 2017
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Abstract

The aim of this research was to explore one of the most intriguing dimensions of every firm’s business—its performance. Aside from analysing the influence of industry’s characteristics on the firm’s performance, the authors addressed the characteristics of dynamic capabilities and their role in contribution to the firm’s ultimate success. The analysis was conducted on a sample of 118 small Croatian manufacturing companies. The application of the Structural Equation Modelling (SEM) approach revealed a statistically significant influence of both the industry’s characteristics (represented by Porter’s five forces framework) and dynamic capabilities (based on Teece’s theory) on the firm’s performance, where the influence of dynamic capabilities is proven to be larger than that of the industry. View Full-Text
Keywords: performance; small business; industry’s characteristics; structural equation modelling; dynamic capabilities; manufacturing; Croatia performance; small business; industry’s characteristics; structural equation modelling; dynamic capabilities; manufacturing; Croatia
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).
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Pervan, M.; Curak, M.; Pavic Kramaric, T. The Influence of Industry Characteristics and Dynamic Capabilities on Firms’ Profitability. Int. J. Financial Stud. 2018, 6, 4.

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