Understanding superstar firms’ phenomenon

Abstract

Purpose: The current worldwide business landscape with large firms, asymmetric market shares and reduced competition has heralded academic and journalistic scholarship to discuss the causes and consequences of such a phenomenon. This is referred to as the emergence and sustenance of superstar firms. The previous studies make a fragmented understanding of the superstar firms, thus, there is a need to take stock of this vast and dispersed literature to set the future research agenda. The present study aims to focus on conceptual and fundamental aspects of Superstar firms’ phenomenon. Design/methodology/approach: Adopting critical assessment methodology of review and systematic literature review i.e. preferred reporting items for systematic reviews and meta-analyses (PRISMA), this study investigates relevant literature. The paper critically synthesizes and analyses the definitions, measurement techniques, characteristics and roles of superstar firms. Findings: This study defines superstar firms as more productive firms having larger market share and wider markup than other firms in industries. The study also finds that superstar firms are superior in advertisement strategies, marketing strategies, technological adoption, skilled employment and intangible investment, while the advancement of technology and the advent of globalization are the major drivers of the star firms’ phenomenon. Besides, this study uncovers the diverse roles of superstar firms concerning different economic aspects. Research limitations/implications: The review is concept centric rather than author centric. It does not incorporate quantitative data analysis for empirical investigations of hypothesis. However, the research addresses the commonalties and distinctions of factors responsible for the emergence of superstar firms, which dissects investment in public R&D, technological import subsidies and credit facilities to provide equitable opportunity and balanced development. Originality/value: As the superstar firms’ phenomenon is an emerging and crucial aspect, the present study systematically analyses the phenomenon to comprehend the market structure and behavior. The study also identifies the research gaps that guide future research to understand the present setting of the market. © 2024, Emerald Publishing Limited.