Industry was controlled using the OECD industry scheme, including five categories: low-tech manufacturing, medium–low-tech manufacturing, medium–high manufacturing, high-tech manufacturing, and services. We also controlled two variables for the market environment: market rowth and competitive intensity. We measured market growth with a three-item scale adapted from Zhou andWu (2010) that measures how fast the firm's business activity has been growing. Competitive intensity was measured by assessing the severity of competition in the local market using a scale from Atuahene-Gima and Ko (2001).