Recent literature on multinational firms has stressed the importance of low productivity as a barrier to the cross-border expansion of firms. However, firms typically also need external finance to finance the costs of market entry. In addition to productivity-related real barriers, financial constraints may thus restrict market entry. Building on a model of multinational firms facing real and f...

The aim of this study is to empirically investigate the effectiveness of Transaction Cost Theory in explaining the entry mode choices between wholly-owned subsidiaries (WOS) and joint venture (JV) of Taiwanese Electronic Components firms in China market from 2003 to 2005 .Through their real business viewpoint of investing in China , this study hopes to examine the explanation of transaction cos...

This paper provides a framework for explicitly modeling the information gathering activities of potential entrants and analyzes how entry behavior is affected by these activities. We assume that information is acquired secretly and that firms face uncertainty about more than one variable. When costs of information gathering are small, entry decisions are as if firms had perfect information so t...

This article introduces technology choice into a Hotelling model of spatial competition. This yields two entry deterrence devices, as well as complex strategic choices for the firms and a rich picture of industry structure. Depending on cost parameters and market size, firms may choose to over-invest or to under-invest. Industry structure is typically asymmetric either in terms of the locations...

Ojala, Arto Internationalization of software firms: Finnish small and medium-sized software firms in Japan Jyväskylä: University of Jyväskylä, 2008, 57 p. (+ articles) (Jyväskylä Studies in Computing, ISSN 1456-5390; 89) ISBN 978-951-39-3251-0 (PDF), 978-951-39-3130-8 (nid.) Finnish summary Diss. This dissertation investigates internationalization of small and medium-sized software firms first ...

The purpose of this study is to help bio-tech firms solve the foreign investment (FI) entry mode selection problem. This study combines the concepts of factor analysis, analytic hierarchy process (AHP), genetic algorithm (GA), and fuzzy integral to construct an entry mode selection approach. This study produces several interesting findings. (1) In the different investment entry modes, there are...

Following the deregulation policies implemented by the Chinese government in 2001, foreign banks were allowed to enter the Chinese banking market gradually, in different years in different cities. As a result, from 2001 to 2006 firms in different cities had differential access to foreign bank credit. Using an extensive firm-level dataset from the manufacturing census in China, this paper studie...

We study reactions to entry in a Cournot model, contrasting the case where firms are endowed with unchangeable technologies against that where technologies are flexible. By the latter we mean that firms can change the installed production technique at zero cost (fully flexible technologies). We show that when firms are technologically flexible, entry can increase equilibrium prices. The analysi...

Rural firms have a higher survival rate than urban firms. Over the first 13 years after firm entry, the hazard rate for firm exits is persistently higher for urban firms. While differences in firm attributes explain some of the rural-urban gap in firm survival, rural firms retain a survival advantage 18.5% greater than observationally equivalent urban firms. We argue that in competitive markets...

Entrepreneurship and the Process of Firms’ Entry, Survival and Growth This survey paper aims at critically discussing the recent literature on firm formation and survival and the growth of new-born firms. The basic purpose is to single out the microeconomic entrepreneurial foundations of industrial dynamics (entry and exit) and to characterise the founder’s ex-ante features in terms of likely e...