An analysis of firm and industry effects on performance of small and medium-size Ecuadorian business.

Abstract

Profitability is one of the most important indicators to analyze for managers and strategic management researchers since it serves to observe the capacity of a business to generate profits. Hence, in this study will assess the impact of industry and firm effects on profitability of small and medium-size business in Ecuador using a Hierarchical Lineal Model. Concluding that business strategy and the decisions made by top management teams are more important than the sector in which company operates.