Benchmarking Firm Capabilities to Turn Undesirable Financial Performance Around in the U.S. Restaurant Industry

REFERENCES

• Amit, R., & Shoemaker, P. J. H. (1993). Strategic assets and organizational rents. Strategic Management Journal, 14(1), 33 –46.
   Web of Science ®Google Scholar
• Anderson, B. (1999). Industrial benchmarking for competitive advantage. Human Systems Management, 18, 287 –296.
   Google Scholar
• Anitia, M., Pantzalis, C., & Park, J. C. (2010). CEO decision horizon and firm performance: An empirical investigation. Journal of Corporate Finance, 16, 288 –301.
   Web of Science ®Google Scholar
• Assaf, A. G., Deery, M., & Jago, L. (2010). Evaluating the performance and scale characteristics of the Australian restaurant industry. Journal of Hospitality & Tourism Research, 35, 419 –436.
   Web of Science ®Google Scholar
• Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99 –120.
   Web of Science ®Google Scholar
• Bhandari, L. C. (1988). Debt/Equity ratio and expected common stock returns: Empirical evidence. The Journal of Finance, 43, 507 –528.
   Web of Science ®Google Scholar
• Brockett, P. L., Golden, L., Sarin, S., & Gerberman, J. H. (2001). The identification of target firms and functional areas for strategic benchmarking. The Engineering Economist, 46, 274 –299.
   Google Scholar
• Bublitz, B., & Ettredge, M. (1989). The information in discretionary outlays: Advertising, research, and development. The Accounting Review, 64(1), 108 –124.
   Web of Science ®Google Scholar
• Burnett, M., Silverman, B., & Riesenberg, R. (2003). Restaurant: A reality show. New York, NY: NBC.
   Google Scholar
• Camp, R. C. (1989). Benchmarking: The search for best practices that lead to superior performance. Milwaukee, WI: ASQC Quality Press.
   Google Scholar
• Camp, R. C. (1995). Business process benchmarking: Finding and implementing best practices. Milwaukee, WI: ASQC Quality Press.
   Google Scholar
• Canina, L., & Carvell, S. (2008). A comparison of static measures of liquidity to integrative measures of financial and operating liquidity: An application to restaurant operators and restaurant franchisors. Journal of Hospitality Financial Management, 16(1), 1 –23.
   Google Scholar
• Capon, N., Farley, J. U., & Hoenig, S. (1990). Determinants of financial performance: A meta-analysis. Management Science, 36, 1143 –1159.
   Web of Science ®Google Scholar
• Chan, S. H., Martin, J. D., & Wang, K. (1995). Stock market reaction to capital investment decisions: Evidence from business relocations. Journal of Financial and Quantitative Analysis, 30(1), 81 –100.
   Web of Science ®Google Scholar
• Choi, J. (2010). Analysis of the financial practices of high and low performing firms over periods of peaks and troughs of the restaurant industry cycle. International Journal of Hospitality Management, 29(1), 53 –61.
   Web of Science ®Google Scholar
• Churchill, N. C., & Mullins, J. W. (2001). How fast can your company afford to grow? Harvard Business Review, May, 3 –11.
   Google Scholar
• Collis, D. J. (1994). How valuable are organizational capabilities? Strategic Management Journal, 15(8), 143 –152.
   Google Scholar
• Comment, R., & Jarrell, G. A. (1995). Corporate focus and stock returns. Journal of Financial Economics, 37, 67 –87.
   Web of Science ®Google Scholar
• Cyert, R., & March, J. (1963). A behavioral theory of the firm. Englewood Cliffs, NJ: Prentice-Hall.
   Google Scholar
• Czyzewski, A. B., & Hicks, D. W. (1992). Hold onto your cash. Management Accounting, 73, 27 –30.
   Google Scholar
• David, J. K. Jr., Combs, J. G., & Upson, J. W. (2006). When does franchising help restaurant chain performance? Cornell Hotel and Restaurant Administration Quarterly, 47(1), 14 –26.
   Google Scholar
• Day, G. S. (1994). The capabilities of market-driven organizations. Journal of Marketing, 58(October), 37 –51.
   Web of Science ®Google Scholar
• Day, G. S., & Wensley, R. (1988). Assessing advantage: A framework for diagnosing competitive superiority. Journal of Marketing, 52(April), 1 –20.
   Web of Science ®Google Scholar
• Dickson, P. R. (1992). Toward a general theory of competitive rationality. Journal of Marketing, 56(January), 69 –83.
   Web of Science ®Google Scholar
• Ely, K. (1995). Operating lease accounting and the market’s assessment of equity risk. Journal of Accounting Research, 33, 397 –415.
   Web of Science ®Google Scholar
• Fama, E. F., & French, K. R. (1993). Common risk factors in the returns on stocks and bonds. Journal of Financial Economics, 33(1), 3 –56.
   Web of Science ®Google Scholar
• Garvin, D. A. (1993). Building a learning organization. Harvard Business Review, 71(July–August), 78 –91.
   PubMed Web of Science ®Google Scholar
• Geller, A. N., & Heath, L. C. (1981). Solvency, financial statements, and the importance of cash-flow information. Cornell Hotel and Restaurant Administration Quarterly, 22(3), 45 –52.
   Google Scholar
• Grant, R. M. (1996). Prospering in dynamically-competitive environments: Organizational capability as knowledge integration. Organizational Science, 7, 375 –387.
   Web of Science ®Google Scholar
• Gresov, C. (1989). Exploring fit and misfit with multiple contingencies. Administrative Science Quarterly, 34, 431 –453.
   Web of Science ®Google Scholar
• Greve, H. R. (1998). Performance, aspirations, and risky organizational change. Administrative Science Quarterly, 43(1), 58 –86.
   Web of Science ®Google Scholar
• Haunschild, P. R., & Miner, A. S. (1997). Modes of interorganizational imitation: The effects of outcome salience and uncertainty. Administrative Science Quarterly, 42, 472 –500.
   Web of Science ®Google Scholar
• Hiebeler, R., Kelly, T. B., & Ketteman, C. (1998). Best practices. New York, NY: Simon & Schuster.
   Google Scholar
• Hua, N., Nusair, K., & Upneja, A. (2011). Financial characteristics and outperformance: Evidence of a contemporary framework from the U.S. lodging industry. International Journal of Contemporary Hospitality Management, 24(4), 23 –56.
   Google Scholar
• Hua, N., Xiao, Q., & Yost, E. (2012). An empirical framework of financial characteristics and outperformance in troubled economic times: Evidence from the restaurant industry. International Journal of Contemporary Hospitality Management, 25(6), 945–964.
   Web of Science ®Google Scholar
• Jennings, L. (2011). Top restaurant marketing trends for 2012. Retrieved from http://nrn.com/archive/top-restaurant-marketing-trends-2012
   Google Scholar
• Jensen, M. (1989). Eclipse of public corporation. Harvard Business Review, 67(5), 61 –74.
   Web of Science ®Google Scholar
• Jensen, M., & Murphy, K. (1990). Performance pay and top-management incentives. Journal of Political Economy, 98, 225 –262.
   Web of Science ®Google Scholar
• Jose, M. L., Lancaster, C., & Stevens, J. L. (1996). Corporate returns and cash conversion cycles. Journal of Economics and Finance, 20, 33 –46.
   Google Scholar
• Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision risk. Econometrica, 47, 263 –292.
   Web of Science ®Google Scholar
• Kim, H., & Gu, Z. (2006). Predicting restaurant bankruptcy: A logit model in comparison with a discriminant model. Journal of Hospitality and Tourism Research, 30, 474 –493.
   Google Scholar
• Lee, S., Koh, Y., & Kang. K. H. (2011). Moderating effect of capital intensity on the relationship between leverage and financial distress in the U.S. restaurant industry. International Journal of Hospitality Management, 30, 429 –438.
   Web of Science ®Google Scholar
• Leonard-Barton, D. (1995). Wellsprings of knowledge: Building and sustaining the sources of innovation. Cambridge, MA: Harvard Business School Press.
   Google Scholar
• Lev, B. (1974). On the association between operating leverage and risk. The Journal of Financial and Quantitative Analysis, 9, 627 –641.
   Web of Science ®Google Scholar
• Lev, B., & Thiagarajan, S. R. (1993). Fundamental information analysis. Journal of Accounting Research, 31, 190 –215.
   Web of Science ®Google Scholar
• Levinthal, D. A., & Myatt, J. (1994). Co-evolution of capabilities and industry: The evolution of mutual fund processing. Strategic Management Journal, 15(Special Issue), 45 –62.
   Web of Science ®Google Scholar
• Madanoglu, M., Lee, K., & Kwansa, A. F. (2008). Risk-return analysis of fast-food versus casual-dining restaurants: Who moved my cheeseburger? Journal of Hospitality & Tourism Research, 32, 327 –341.
   Web of Science ®Google Scholar
• March, J. G. (1991). Exploration and exploitation in organizational learning. Organization Science, 2(1), 71 –87.
   Web of Science ®Google Scholar
• Milbourn, T. T. (1996). The executive compensation puzzle: Theory and evidence. IFA Working Paper No. 235, London Business School.
   Google Scholar
• Mittelstaedt, R. E., Jr. (1992). Benchmarking: How to learn from best in class practices. National Productivity Review, 11, 301 –315.
   Google Scholar
• National Restaurant Association. (2012). 2012 restaurant industry overview. Retrieved from http://www.restaurant.org/research/facts/
   Google Scholar
• Nickell, S. (1996). Competition and corporate performance. Journal of Political Economy, CIV, 724 –746.
   Web of Science ®Google Scholar
• Parsa, H. G., Self, J., Njite, D., & King, T. (2005). Why restaurants fail. Cornell Hotel and Restaurant Administration Quarterly, 46, 304 –322.
   Google Scholar
• Ralston, D., Wright, A., & Kumar, J. (2001). Process benchmarking as a market research tool for strategic planning. Marketing Intelligence and Planning, 19, 273 –281.
   Google Scholar
• Singh, J. (1986). Performance, slack, and risk taking in organizational decision making. Academy of Management Journal, 29, 562 –585.
   Web of Science ®Google Scholar
• Sitkin, S. B., & Pablo, A. L. (1992). Reconceptualizing the determinants of risk behavior. Academy of Management Review, 17(1), 9 –38.
   Web of Science ®Google Scholar
• Slater, S. F., & Narver, J. C. (1995). Market orientation and the learning organization. Journal of Marketing, 59(July), 63 –74.
   Web of Science ®Google Scholar
• Srivastava, R. K., Shervani, T. A., & Fahey, L. (1999). Marketing, business processes, and shareholder value: An organizationally embedded view of marketing activities and the discipline of marketing. Journal of Marketing, 63(Special Issue), 168 –179.
   Web of Science ®Google Scholar
• Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18, 509 –535.
   Web of Science ®Google Scholar
• Venkatraman, N. (1990). Performance implications of strategic coalignment: A methodological perspective. Journal of Management Studies, 27(1), 19 –41.
   Web of Science ®Google Scholar
• Venkatraman, N., & Prescott, J. E. (1990). Environment-strategy coalignment: An empirical test of its performance implications. Strategic Management Journal, 16(4), 1 –23.
   Web of Science ®Google Scholar
• Vorhies, D. W., & Morgan, N. A. (2003). A configuration theory assessment of marketing organization fit with business strategy and its relationship with marketing performance. Journal of Marketing, 67(January), 100 –115.
   Web of Science ®Google Scholar
• Voss, C. A., Ahlstrom, P., & Blackmon, K. (1997). Benchmarking and operational performance: Some empirical results. International Journal of Operations & Production Management, 17, 1046 –1158.
   Web of Science ®Google Scholar
• Wang, Y. (2002). Liquidity management, operating performance, and corporate value: Evidence from Japan and Taiwan. Journal of Multinational Financial Management, 12, 159 –169.
   Google Scholar
• Williams, R. D. (2006). Restaurant rent: How much is too much? HVS Free E-News and Research Subscriptions. Retrieved from http://www.hvs.com/StaticContent/Library/RestaurantRent/
   Google Scholar
• Winter, S. G. (2000). The satisficing principle in capability learning. Strategic Management Journal, 21, 981 –996.
   Web of Science ®Google Scholar
• Zairi, M. (1998). Benchmarking for best practice. Oxford, UK: Butterworth-Heinem.
   Google Scholar