| 초록 |
Strategic management research has demonstrated the importance of firm and industry structure
as drivers of firm profitability. However, less is known about how firm and industry factors affect
firm profitability in Korean food manufacturing. We use a panel data of financial statements for
Korean food processing firms and decompose the variance in these firms return-on-assets into
year, firm and industry effects using a hierarchical linear model. The results show that firm effects
are far more important than industry structure in explaining firm performance difference in the
food processing industry. In addition, we also examine the effect of specific strategic factors on
firm performances. In particular, we find that firm size, firm growth, resource availability and
market share are drivers of profitability while firm risks and age as well as advertising intensity
have a negative influence. Although firm effects outweigh industry and time effects, the results
indicate that industry growth also has a positive influence on firm performances. These strategic
factors being effectively utilized, business managers will be able to focus their resources and
attention on the core factors rather than the peripheral factors. In addition, the findings provide
insights for the government policy makers to prepare effective support policies that can enhance
the competitiveness of Korean food manufacturing.
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