To what extent a firm’s resources (firm effect) and the structure of the sector (industry effect) are sources of a firm’s competitiveness has been debated for years in strategic management. Most of the empirical studies carried out have focused on large firms and have used static performance measures, and in them the firm effect generally outweighs the industry effect. This research contributes to this debate in trying to verify whether the competitive advantage that relies on the firm’s resources is sustainable, especially in small firms. We used a sample of almost 15,000 Spanish firms to test the impact that the firm and the industry effects have on sustainable performance, for both small and large firms, applying hierarchical linear modelling with a variable measured through time-varying parameters. Our results confirm the absolute importance of the firm effect on sustainable organizational performance, regardless the firm size, and show that, even though the industry effect has little weight in explaining sustainability, it is significantly higher in the case of small firms. This means that managers must concentrate efforts on providing their firm with the necessary resources to achieve a competitive advantage while choosing a good sector to position itself.

Quality of life (QoL) is both a main concern of good local governance and an indicator of city performance. A key question to answer is that of what resources have the potential to enhance city performance, thus providing added value to stakeholders. By adopting a resource-based view (RBV), this paper explores the relationships between a group of strategic resources (e-government, transparency, and reputation) and QoL in a sample of 78 Spanish municipalities. Our study makes a contribution by providing an original design of a set of relations among our own selected resources and between them and quality of life. In order to test those relations, we define and create four constructs by using four different data sources and structural equation modeling (SEM). The results show a positive influence of resources on QoL, which is supported by a number of positive direct and indirect interactions among them. This means that municipalities with better strategic resources in local governments exhibit a higher level of quality of life.

This paper aims to examine how sample design affects the relative importance of firm and industry factors in explaining performance variations. Using a sample of 14,204 Spanish firms over a 10-year time frame, this study uses partial sensitivity analysis to examine the biases in results as a consequence of three methodological relevant concerns: outliers, industry classification and period. Results indicate that the industry effect, supported by the industrial organization theory, has been underestimated in the empirical tests. This study examines the biases in results as a consequence of three methodological relevant concerns (outliers, sector classification and period), which have not been sufficiently studied to date. Moreover, the study provides some new evidence favourable to the Industrial Organization (IO) perspective, which could have been biased and underestimated by the literature, as most of the analyses do not consider the methodological issues studied in this paper.