Skip to main content
SpringerLink
Log in

Profit

  • Living reference work entry
  • First Online:
The Palgrave Encyclopedia of Strategic Management

  • 87 Accesses

Abstract

The field of strategic management deals with fundamental questions about how company profits emerge and persist. After a short definition of the term, we will therefore discuss how to empirically measure firms’ profit, discuss the key determinants of the observed variance in firms’ profit, and analyse whether these differences in profits are persistent.

This entry was originally published on Palgrave Connect under ISBN 978-1-137-49190-9. The content has not been changed.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Institutional subscriptions

References

  • Besanko, D., D. Dranove, M. Shanley, and S. Schaefer. 2007. Economics of strategy, 4th ed. New York: Wiley.

    Google Scholar 

  • Cyert, R.M., and J.G. March. 1992. A behavioral theory of the firm, 2nd ed. Cambridge, MA: Blackwell.

    Google Scholar 

  • Geroski, P.A., and A. Jacquemin. 1988. The persistence of profits: A European comparison. The Economic Journal 98: 375–389.

    Article  Google Scholar 

  • Grant, R.M. 2010. Contemporary strategy analysis, 7th ed. Chichester: Wiley.

    Google Scholar 

  • McGahan, A.M., and M.E. Porter. 1997. How much does industry matter, really? Strategic Management Journal 18: 15–30.

    Article  Google Scholar 

  • McGahan, A.M., and M.E. Porter. 2002. What do we know about variance in accounting profitability? Management Science 48: 834–851.

    Article  Google Scholar 

  • McGahan, A.M., and M.E. Porter. 2003. The emergence and sustainability of abnormal profits. Strategic Organization 1: 79–108.

    Article  Google Scholar 

  • Mueller, D.C. 1986. Profits in the long run. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Rumelt, R. 1991. How much does industry matter? Strategic Management Journal 12: 167–185.

    Article  Google Scholar 

  • Schmalensee, R. 1989. Inter-industry studies of structure and performance. In Handbook of industrial organization, ed. R. Schmalensee and R.D. Willig. Amsterdam: Elsevier.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Bocconi University, Milan, Italy

    Giovanni Valentini

Authors
  1. Giovanni Valentini
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Giovanni Valentini .

Editor information

Editors and Affiliations

  1. Stanford University , Stanford, California, USA

    Mie Augier

  2. Tusher Ctr Intellectual Capital, University of California Tusher Ctr Intellectual Capital, Berkeley, California, USA

    David J. Teece

Copyright information

© 2016 The Author(s)

About this entry

Cite this entry

Valentini, G. (2016). Profit. In: Augier, M., Teece, D. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-94848-2_508-1

Download citation

  • DOI: https://doi.org/10.1057/978-1-349-94848-2_508-1

  • Received:

  • Accepted:

  • Published:

  • Publisher Name: Palgrave Macmillan, London

  • Online ISBN: 978-1-349-94848-2

  • eBook Packages: Springer Reference Business and ManagementReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

Publish with us

Policies and ethics

Search

Navigation