Abstract
A meta-analysis of results from 320 published studies relates environmental, strategic, and organizational factors to financial performance. The 320 empirical studies that were reviewed were published between 1921 and 1987. Findings from the most frequently studied relationships include: 1. Industry concentration was addressed in almost 100 studies; over 1,100 tests show a clear directional effect. 2. Growth, analyzed in 88 studies, is consistently related to higher financial performance. 3. Market share is positively associated with financial performance. 4. Size of firm or business appears unrelated to financial performance. 5. Capital investment intensity shows a positive relationship to financial performance at the industry level. 6. Certain strategic factors matter, e.g., advertising intensity is positively related to performance at both industry and firm levels.