The Persistence of Profits in the Long Run: A New Approach

We present a trend‐based alternative to the standard first‐order autoregression model in persistence of profits studies. This is motivated by reservations over the interpretation of the standard model, and rests on a different concept of dynamic competition. A nine‐category taxonomy of long‐run persistence stereotypes is developed. Structural time series estimates are presented for a sample of UK companies. We find the null of long run competitive equilibrium not rejected in nearly a third of cases, but non‐eroding persistence to be present in around 60%.     

Internal organisation, business groups and corporate performance : An empirical test of the multidivisional hypothesis in Japan

The paper explores the relationship between business groups, ownership structure, and internal organisation in a sample of Japanese enterprises. Empirical data confirms an association between organisational structure and diversified business strategy that has been found elsewhere. However, as in previous work on West Germany but not the USA and Britain, no significant relationship between M-form organisation and financial performance is detected.     

Testing for Persistence of Profits’ Differences Across Firms

We review the logic and implications underlying both static and dynamic models of competition, and associated tests of competitive effectiveness. Complications arising due to innovation, mergers and cyclical factors are discussed. Points raised in the theoretical discussion are illustrated with case histories and estimates for a number of US and UK companies. The empirical analysis tests a larger set of models than has been used in most previous work, and uses longer time series of company profits. We conclude that the patterns of profits observed in both countries are consistent with a larger and more complicated set of models of the competitive process than has been assumed until now, and that further work remains to be done in clarifying both why some firms are persistently profitable, and the nature of the ‘shocks’ that appear to produce structural breaks in the time series of companies’ profits.     

On Modelling the Persistence of Profits in the Long Run: A Test of the Standard Model for 156 US Companies, 1950–99

‘Persistence of profits’ studies of competitiveness across samples of firms, and for individual firms, have almost always employed a simple first order autoregression model. Reservations over the use and interpretation of the AR1 in this context raise questions both over the reliability of previous results, and for future research strategy. We test the standard model on a common sample of 156 US companies over a 50 year period against a recently proposed, alternative model that adopts structural time series methods. A statistically significant degree of consistency is found between the two approaches in identifying firms persistently above or below the competitive norm in the long run. However, the structural time series method detects a much higher overall incidence of persistence, and appears to offer advantages in cases where the profit dynamics are more complex.     

The Employment Interview: A Review of Recent Research and Recommendations for Future Research

The past decade has seen continued interest in the employment interview, with several changes in research emphasis. The present review is a comprehensive examination of interview research conducted since Harris last reviewed this literature. We begin with a review of the traditional areas of interview research: reliability, validity, structured interviews, interviewer differences, equal employment opportunity issues, impression management, and decision-making processes. Next, we review and discuss more recent developments in interview research such as the use of the interview as a means of assessing person–organization (P–O) fit and applicant reactions to the employment interview. Throughout the review, suggested topics for future research are discussed.     

Textiles and Clothing in a New Round of Trade Negotiations

Because developing countries generally have a comparative advantagein the production of labor-intensive textiles and clothing,the liberalization of trade in these products is critical totheir prospects for increasing foreign exchange earnings. Thenew round of trade negotiations is likely to be less importantfor trade in textiles and clothing, however, than were the recentrenegotiations of the fourth Multifibre Arrangement (MFA). Asthe MFA remains in effect until July 1991, this limits the rangeof measures which can be altered in the interim. Nonetheless,textile trade will influence the process and outcome of thecurrent negotiations because of the overlap of textile tradedisputes with other broader trade issues. These include tariffs,the rollback of tariffs and quotas, voluntary export restraints,and other nontariff barriers, all of which have been appliedto textiles trade at various times. Each of these measures hasan influence on trade flows and a cost to both the importingand exporting countries. Any proponents of liberalization oftrade in textiles and clothing must not only be familiar withthese costs but also must be knowledgeable about the economicand political forces which have initiated and sustained theprotective measures. The following discussion suggests thatthere are groups and transitional approaches which may favorsome progress in textile trade liberalization in the currentround of negotiations.     

Exploring the identity and reputation of departmental groups: whose opinions matter most to their members?

This article focuses on perceptions of a collective's contribution identity (i.e. how its own members view the effectiveness of its contributions towards organisational goals) and contribution reputation (i.e. how the rest of an organisation views its contributions), and how they are associated with the job satisfaction of its members. Data from 187 employees across 10 organisational departments was used to test competing hypotheses developed from three different theoretical perspectives. Results suggest that satisfaction was positively linked to member beliefs about their department's contributions to organisational success. Reputation had a positive impact on satisfaction only when it is derived from individuals from other departments that a department interacted frequently with.