Turbulence in growing and declining industries

Baptista R., Karaoez M.

SMALL BUSINESS ECONOMICS, cilt.36, sa.3, ss.249-270, 2011 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 36 Sayı: 3
  • Basım Tarihi: 2011
  • Doi Numarası: 10.1007/s11187-009-9226-2
  • Dergi Adı: SMALL BUSINESS ECONOMICS
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.249-270
  • Anahtar Kelimeler: Displacement, Entry, Entry mistakes, Exit, Industry life cycle, Selection, Replacement, Turbulence, MANUFACTURING-INDUSTRIES, UNITED-STATES, EXIT DECISIONS, SMALL FIRMS, LIFE-CYCLE, ENTRY, EVOLUTION, SURVIVAL, GROWTH, DETERMINANTS
  • Akdeniz Üniversitesi Adresli: Hayır

Özet

Turbulence over the industry life cycle is examined for the case of Portugal using the lowest possible level of industry aggregation, thus allowing for the use of panel data to study the evolution of product markets. Replacement of exiting firms by subsequent entrants plays a primary role in generating turbulence in high growth markets, while displacement of incumbents by recent entrants is the main selection force in declining markets. As the industry life cycle progresses, trial-and-error entry and entry mistakes decrease, and turbulence subsides.