Among the factors suggested that lead to the inconsistency of estimated corporate
effects, researchers have found that the effects of the corporate parent differ for
companies in different industries (e.g. Bowman and Helfat, 2001; Chang and Singh,
2000; McGahan and Porter, 1997; Rumelt, 1991; Schmalensee, 1985). McGahan and
Porter (1997) report that corporate parent effects are substantially larger for
non-manufacturing companies (e.g. agriculture, transportation, services) than for
manufacturing companies that were analyzed in the studies of Rumelt (1991) and
Schmalensee (1985). Due to the considerable limitations of prior studies, researchers
suggest that most results of corporate effects’ studies should only be interpreted
strictly within the context of their samples (Bowman and Helfat, 2001). Consequently,
more research is needed to disclose the specific corporate effects of companies in
unstudied industries, including the hospitality industry.