Literature, spanning industrial organization and strategic management disciplines, uses variance decomposition to understand the relative importance of firm, industry and business group effects in shaping profitability variations. Some literature analyzes firm profitability under transition to liberalization. Previous research has taken a static before-and-after view on institutional change. This paper aims to focus on the dynamic process of liberalization in India, analyzing how different institutional regime changes alter firm behavior leading to changes in profitability patterns.,Based on a panel data set of several thousand Indian firms, spanning the 26-year period between 1980-1981 and 2005-2006, the authors determine the relative importance of firm, industry and business group effects in explaining manufacturing firms’ profitability variances across different institutional phases. The authors evaluate three propositions that help assess transition dynamics between phases. They determine the quantum of catch-up or falling behind by firms.,Different industries emerge as profitability leaders, as the economy progresses through different liberalization phases. Business groups that have been more effective in resource appropriation, rent-seeking, politician management and non-market activities in a controlled regime are replaced as profit leaders by those that, in a free-market economy, can be capable of intra-business resource allocation tasks and leveraging corporate capabilities.,The approach demonstrates how to analyze the underlying detailed structure of firm-level data, and performance outcomes, to derive nuanced interpretation of factors giving rise to the effects that explain profitability variances, and how to assess the way these effects behave over time. The dynamic evidence-based approach highlights what factors matter, where, when and why, in influencing profitability variances, which are a key dimension of industrial and economic performance.

中文翻译：

---

制度体制和盈利能力转变：以印度制造企业为例

跨越行业组织和战略管理学科的文献使用方差分解来理解公司、行业和企业集团效应在塑造盈利能力变化方面的相对重要性。一些文献分析了向自由化过渡的企业盈利能力。先前的研究对制度变迁采取了静态的前后视角。本文旨在关注印度自由化的动态过程，分析不同制度制度的变化如何改变公司行为，从而导致盈利模式的变化。基于数千家印度公司的面板数据集，跨越了 26 年间1980-1981 和 2005-2006 年，作者确定了公司的相对重要性，行业和企业集团效应在解释不同制度阶段制造企业盈利能力差异方面的作用。作者评估了有助于评估阶段之间过渡动态的三个命题。它们决定了企业追赶或落后的程度。随着经济在不同的自由化阶段取得进展，不同的行业将成为盈利能力的领导者。在受控体制中在资源占用、寻租、政治管理和非市场活动方面更有效的商业团体被那些在自由市场经济中能够获得企业内部资源的团体取代为利润领导者分配任务和利用企业能力。该方法演示了如何分析企业级数据的底层详细结构，和绩效结果，以对产生解释盈利能力差异的影响的因素进行细微的解释，以及如何评估这些影响随时间推移的表现方式。动态循证方法强调了影响盈利能力差异的重要因素、地点、时间和原因，这是工业和经济绩效的一个关键维度。