Final answer:
True. The contingency theory perspective on firm performance emphasizes the structure of the industry.
Step-by-step explanation:
The statement is true. The contingency theory perspective on firm performance indeed emphasizes the structure of the industry. Contingency theory suggests that there is no one-size-fits-all approach to managing organizations, and the effectiveness of organizational structures and practices depends on the specific circumstances or contingencies that a firm faces.
Market structure is one of the key contingencies that affect firm performance. It refers to the characteristics and dynamics of a market in which firms operate, including the number and size of competitors, barriers to entry, and the level of product differentiation. Different market structures require different organizational structures and strategies for firms to succeed.
For example, in a highly competitive market with many small competitors, firms need to be agile and flexible to quickly respond to changes in customer preferences and market conditions. On the other hand, in a concentrated market with only a few dominant firms, firms may be able to exert market power and pursue more stable and long-term strategies.