A Cross-Sectional Study of Business Service Profitability Some Implications for Strategy
A cross-sectional study has been made of the Business Service Sector in the U.S. Relative market share, revenue/employee, and perhaps investment were found to be contributors to pretax profitability in this sector. Consequently, strategies directed toward optimizing revenue/employee, growth, and investment may be effective in determining firm performance. The opportunities provided to small business in this sector, the importance of this sector in the economy, and the importance of strategy to small businesses would appear to make the study of interest to small business managers.