Virtually all studies have concluded that firm-specific factors are more important than industry-specific factors in terms of firm profitability.

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Multiple research studies have consistently found that firm-specific factors, such as technology, management, and strategy, have a greater influence on a firm's profitability than industry-specific factors. While external factors, such as market competition and economic conditions, also have an impact, the internal workings and decisions of the firm play a more significant role in determining its success.

Virtually All Studies Have Concluded That Firm-Specific Factors Are More