Using a merged data set for Scotland comprising the Scottish Global Connections Survey (GCS) and the Annual Respondents Database (ARD), we demonstrate that exporters and those engaged in outward FDI have a productivity advantage over those firms that do not internationalise (both preand post-entry). We then consider the factors that determine which firms in Scotland operate in overseas markets,...

The main contribution of entrepreneurship theory to economics is to provide an account of market performance in disequilibrium but little empirical research has examined firm entry and exit in this context. We redress this by modelling the interrelationship between firm entry and exit in disequilibrium. Introducing a new methodology we investigate whether this interrelationship differs between ...

S the U.S. personal computer industry from its inception in 1974 through 1994, we address the following questions. What product technology strategies increase the survival chances of entrants into new, technologically dynamic industries? Does the effectiveness of these strategies differ by pre-entry experience? Does the effectiveness of these strategies differ by when firms enter a new industry...

Kenya has started to rely significantly on technologies developed in developing countries particularly China rather than those from advanced countries such as the United Kingdom, Germany and Japan. Using data from furniture manufacturing firms in Kenya, the paper compares the investment cost and the scale characteristics of the technologies (machines and equipment) from China with those from ad...

We study how markets for technology affect entry and survival in the information security industry. Markets for technology facilitate the entry of firms that lack proprietary technology. However, they also increase the relative advantage of downstream capabilities. Since we do not observe the entire population of potential entrants, we test these ideas by studying survival. The results show tha...

In this paper we consider the entry and exit of firms in a Ramsey model with capital and an endogenous labour supply. At the firm level, there is a fixed cost combined with increasing marginal cost, which gives a standard U-shaped cost curve with optimal firm size. The costs of entry (exit) are quadratic in the flow of new firms. The number of firms becomes a second state variable and the entry...

A critical issue for firms considering conducting business overseas is the choice of market entry mode. The two most widely options are exporting and foreign direct investment. This study examined a number of factors which have been suggested in the literature as important determinants of the choice between these two entry modes. Key factors examined included international business experience, ...

Using a resource-based view model, this paper examines the main factors influencing Small and Medium-Sized Enterprise (SME) international entry mode selection. In addition, a possible relationship between firms belonging to industrial districts and the entry mode choice has been verified. Data for the analysis of this study were collected interviewing 221 owners/managers of SMEs in Italy. Resul...

Abstract We show that cost asymmetry between the domestic and foreign firms is not necessary for occurrence of insufficient entry in country. This result provides a rationale pro-competitive policies even absence asymmetries among firms. However, if significant demand comes from countries, market structures are determined endogenously domestic-entry an open economy might be insufficient, implyi...

In this paper we aim to explain intuitively heterogeneous firms’ optimal location decisions in a simple spatial market. To do so, we present and solve a four-stage game of entry, location, pricing and consumption in a spatial price discrimination framework with arbitrarily many heterogeneous firms. We provide a unique equilibrium outcome without imposing restrictions on the distribution of marg...