An Empirical Study of Strategic Positioning and Production Efficiency

Table 5

Cost leadership strategy and production efficiency. Low cost leadership firms compared to high cost leadership firms. Dependent variable: production efficiency.

	Panel A: High cost leadership (top 33%)			Panel B: Low cost leadership (bottom 33%)
	Coefficient estimate	-stat	value	Coefficient estimate	-stat	value
Intercept	−0.0829	−3.94	0.0000	−0.0119	−0.83	0.4041
CL	0.1110	3.83	0.0001	0.0077	3.09	0.0020
Size	0.0454	27.45	0.0000	0.0465	23.47	0.0000
ROA	0.0879	7.87	0.0000	0.2475	17.54	0.0000
Age	0.0005	2.87	0.0042	0.0005	2.21	0.0269
Competition	1.2515	2.50	0.0126	12.5400	7.54	0.0000
	Industry dummies included			Industry dummies included
	Year dummies included			Year dummies included
Adjusted	0.8151			0.7287
Total Obs	11074			11101

See the appendix for variable definitions.