The survival of new plants: Start-up conditions and post-entry evolution

• Type: Article in International Scientific Journal
• Date: 1995

Authors

Mata, J (Author) Other; Portugal, P (Author) Other; Paulo Guimaraes (Author) Other

Journal

Title: International Journal of Industrial Organization

Vol. 13

Pages: 459-481

ISSN: 0167-7187

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 263 Citations

Scopus - 303 Citations

Scientific classification

FOS: Social sciences > Other social sciences

Other information

Authenticus ID: P-001-FXE

DOI: 10.1016/0167-7187(95)00500-5

Abstract (EN): This paper examines the longevity of entrants. We find size to be an important determinant of the chances of survival, this being particularly relevant to de novo entrants as compared with entry by established firms. Current size is also found to be a better predictor of failure than initial size. Moreover, our findings indicate that, after controlling for size differences, past growth matters for survival suggesting a partial adjustment process for firm size in the post entry period. Finally, new plants are more likely to live longer if they enter growing industries or industries with little entry activity.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 23