Ownership structure, contingent-fit, and business-unit performance: A research model and empirical evidence

Johnny Jermias, Lindawati Gani

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)

Abstract

This study investigates the influence of contingent-fit on the relationship between ownership structure and business-unit performance. We predict that contingent-fit between business strategy and its contextual variables will have a positive relationship with business-unit performance. We also predict that widely-held companies will perform better than their closely-held counterparts but that the magnitude of the performance differential will decrease with the increasing level of contingent-fit. Overall, the results are consistent with our predictions. We found that contingent-fit is positively related to business-unit performance and widely-held business-units perform better than their closely-held counterparts. The performance advantage, however, was mitigated by the level of contingent-fit.

Original languageEnglish
Pages (from-to)65-85
Number of pages21
JournalInternational Journal of Accounting
Volume40
Issue number1
DOIs
Publication statusPublished - 1 Jan 2005

Keywords

  • Business-unit performance
  • Contingency theory
  • Ownership structure
  • Strategic orientation

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