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Profitability index

About: Profitability index is a research topic. Over the lifetime, 21949 publications have been published within this topic receiving 448912 citations. The topic is also known as: PI & profit investment ratio.


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Book
01 Jan 1921
TL;DR: In Risk, Uncertainty and Profit, Frank Knight explored the riddle of profitability in a competitive market profit should not be possible under competitive conditions, as the entry of new entrepreneurs would drive prices down and nullify margins, however evidence abounds of competitive yet profitable markets as mentioned in this paper.
Abstract: In Risk, Uncertainty and Profit, Frank Knight explored the riddle of profitability in a competitive market profit should not be possible under competitive conditions, as the entry of new entrepreneurs would drive prices down and nullify margins, however evidence abounds of competitive yet profitable markets. To explain this seeming paradox, Knight uncovers the distinction between calculable risk and essentially unknowable uncertainty. Knight argued that risk stems from repeated events, which therefore allow probabilities to be calculated and factored into decisions, as for instance insurers do. Uncertainty however, stems from events that are unpredictable and as such cannot be prepared against. According to Knight, it is the interplay between risk and uncertainty on the one hand and competition between incumbent and new entrepreneurs that accounts for the enormous variation in profitability across firms and, for the same firms, over time. His insights on the sources of profit have been instrumental in shaping modern economic theory and to the development of a useful understanding of probability. This New Edition has been typeset with modern techniques and contains a newly compiled Index of important topics. It has been painstakingly proofread to ensure that it is free from errors and that the content is faithful to the original.

10,309 citations

Journal ArticleDOI
TL;DR: In this paper, the authors have been observing for more than three decades that business performance is affected by market orientation, yet to date there has been no valid measure of market orientation.
Abstract: Marketing academicians and practitioners have been observing for more than three decades that business performance is affected by market orientation, yet to date there has been no valid measure of ...

8,812 citations

Journal ArticleDOI
TL;DR: In this article, the authors argue that internal resources rather than the market environment should provide the foundation for a firm's strategy, based on an analysis of relationships among resources, capabilities, conpetitive advantage, and profitability.
Abstract: Recent contributions to strategic management and the theory of the firm collectively known as the "resource-based view of the firm" provide illuminating insights into the sources of profitability and the nature of competitive strategy. This article argues that internal resources rather than the market environment should provide the foundation for a firm's strategy. On the basis of an analysis of the relationships among resources, capabilities, conpetitive advantage, and profitability, this article advances a framework for a resource-based approach to strategy formulation.

8,701 citations

Journal ArticleDOI
TL;DR: In this paper, the authors question the economic benefits of improving customer satisfaction and question whether there are economic benefits to improving quality and customer satisfaction, and they also question the link between quality and satisfaction.
Abstract: Are there economic benefits to improving customer satisfaction? Many firms that are frustrated in their efforts to improve quality and customer satisfaction are beginning to question the link betwe...

5,428 citations

Journal ArticleDOI
George Psacharopoulos1
TL;DR: In this paper, the authors discuss methodological issues surrounding those estimates and confirm that primary education continues to be the number one investment priority in developing countries, and also show that educating females is marginally more profitable than educating males, and that the academic secondary school curriculum is a better investment than the technical/vocational tract.

3,182 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
20242
20233,386
20227,203
20211,245
20201,594
20191,529