Superior economic performance in developed and developing countries

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2017
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Purpose - The extant literature on emerging economies states that the development of the institutional context contributes to the creation of hypercompetitive conditions. The purpose of this paper is to test this assertion by using data from both developing and developed countries. Design/methodology/approach - The study used a probit model, Kolmogorov Smirnov tests and propensity score matching to determine the difference in persistent superior economic performance. Panel data from 600 firms in 26 different countries were used for the period from 1995 to 2011. Findings - The empirical results support the proposition that there is a significant difference in superior economic performance and persistent superior economic performance sustainability between firms in developed and developing countries. Originality/value - This study contributes by fostering other theories related to competitive advantages and giving special emphasis to the comparison between developed and developing countries.


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