ABSTRACT
The structure of firms within an industry influences the structure of the industry and firms are influenced by that industry structure. The viability and profitability of firms are partially determined by elements associated with firm size, firm structure and the character of the industry in which they compete. The joint determination of firm structure and industry structure is important in analyzing the effects of factors that influence the evolution of firms and industry performance over time. The relevance of firm size and structure cannot be determined independently of industry structure because the causal factors are not unidirectional.
