Patterns of entry, post-entry growth and survival

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Abstract

This study compares the patterns of entry, survival and growth of domestic and foreign owned firms. We show that the post-entry behavior of foreign owned firms is quite different from that of their domestic counterparts. Among foreign entrants, we were able to distinguish between those which proceed by creating a new firm and those that acquire an already existing business. Our evidence reveals that the choice of the mode of entry in foreign markets exerts an impact upon the performance of firms that persists long after the moment of entry. As a consequence, our work clearly indicates that there is much to be gained in the understanding of the process of entry in foreign markets by studying the behavior of entrants over their first years in these markets.

Original languageEnglish
Pages (from-to)283-298
Number of pages16
JournalSmall Business Economics
Volume22
Issue number3-4
Publication statusPublished - Apr 2004

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