Abstract
J.Sonia Huang and George Sylvie, “Industry and Firm Effects on
Performance: Evidence from the Online News Industry in the U.S.,” Journal of
Media Business Studies, 7(1):1-20 (2010).
Key Words: online news, industrial organization, resource-based view, market
performance
The online news industry in the United States faces a challenge: Whether online news
media can produce enough quality content that generates revenue and profit at a level
comparable to traditional media. To meet the challenge, this study applied two economic
models, the industrial organization (IO) and the resource-based view of the firm (RBV), to
locate the determinants of market performance for the industry. Relatively, IO’s industry
effects were twice as powerful as RBV’s firm effects in explaining news sites’ revenue
growth, profitability, and relative performance. Together, the determinants derived from
both models explained 21 to 39 percent of variance in market performance among the 208
news sites in the study.
J.Sonia Huang and George Sylvie, “Industry and Firm Effects on
Performance: Evidence from the Online News Industry in the U.S.,” Journal of
Media Business Studies, 7(1):1-20 (2010).
Key Words: online news, industrial organization, resource-based view, market
performance
The online news industry in the United States faces a challenge: Whether online news
media can produce enough quality content that generates revenue and profit at a level
comparable to traditional media. To meet the challenge, this study applied two economic
models, the industrial organization (IO) and the resource-based view of the firm (RBV), to
locate the determinants of market performance for the industry. Relatively, IO’s industry
effects were twice as powerful as RBV’s firm effects in explaining news sites’ revenue
growth, profitability, and relative performance. Together, the determinants derived from
both models explained 21 to 39 percent of variance in market performance among the 208
news sites in the study.
