||Measuring the Performance of Clusters and Firms within Clusters Using the Residual Income Model
||Journal of Economics
Dehning , Bruce;
||Economy, Business and Management
|No. of Pages:
|3.5 Euro (€)
||Clusters of interrelated firms could be an important source of competitive advantage. However, measuring the performance of clusters and firms within clusters is difficult. In this paper we show how the residual income model can be used to measure the performance of clusters and firms within clusters. This is accomplished by separating the performance due to cluster membership from the performance due to firm-specific factors. The model developed should be of particular interest to managers of firms within clusters and the public sector in de-termining appropriate interventions for forming and supporting clusters.
||clusters; residual income; firm value; firm performance; competitive advantage