Using a theoretical model that incorporates asymmetric information and differing comparative advantages among lenders, this paper analyzes the impact of lender entry on credit access and aggregate net output. The model shows that lender entry has the potential to create a segmented market that increases credit access for those firms targeted by the new lenders but potentially reduces credit acc...

We consider an economy with n distinct firms, each of which has a unique set of core competencies and thus initially serves its home product market as a monopolist. We then allow for informational spillovers, enabling firms to acquire foreign competencies in order to enter other product markets. Upon entry a firm has to invest sunk costs and is, of course, only willing to do so if it believes t...

The influence of institutional factors on firm entry has long interested strategy scholars. However, we have limited understanding of how the sociocultural environment, defined as the unwritten, decentralized “rules of the game,” influences founding rates in emergent industries; we know even less about how these noneconomic factors differentially influence entry by new entrepreneurial (de novo)...

We examine how firms in the IT industry adjust their innovation strategy as a response to the potential entry threats they face in their product markets. While turbulence in the product markets caused by startups affects an incumbent firm’s investment decisions, prior research has provided contrasting theoretical predictions on the relationship between new entry threats and innovation strategy....

Chinese pharmaceutical market value is about USD 110 billion in 2009, and it has become the world’s second largest market. Chinese pharmaceutical firms are becoming a growing player in global pharmaceutical chains. In this paper, sample firms are selected and surveyed with a focus on effective internationalization strategies and paths, through an empirical research, this paper summarizes the in...

Entry, Exit and Productivity: Empirical Results for German Manufacturing Industries Using panel data from Spain Farinas and Ruano (IJIO 2005) test three hypotheses from a model by Hopenhayn (Econometrica 1992): (H1) Firms that exit in year t were in t-1 less productive than firms that continue to produce in t. (H2) Firms that enter in year t are less productive than incumbent firms in year t. (...

We exploit a mortgage reform that differentially unlocked home equity across the Danish population and study how this impacted selection into entrepreneurship. find increased entry was concentrated among entrepreneurs whose firms were founded in industries where they had no prior work experience. Nevertheless, we marginal entrants benefiting from higher pre-entry earnings significant share of t...

This paper deals with the problem of entry deterrence in two different ways. First, we analyze conditions under which entry prevention is the best strategy for an incumbent firm, and second, we link entry prevention with another important field of industrial organization, the analysis of reasonable conjectures. That entry prevention may be of interest for incumbent firms has been studied by Osb...

This paper considers the private and public incentives for firms to merge in the face of foreign entry. We set up a standard linear Cournot model of competition within a country and consider the gains to two merging firms and to national welfare in a series of scenarios: homogeneous and heterogeneous firms with and without synergies from mergers. We look first at optimal domestic firm numbers f...

We build a model of firm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A key feature is the selection between highand low-type firms, which differ in terms of their innovative capacity. We estimate the parameters of the model using detailed US Census micro data on firm-level output, R&D and patenting. The model provides a good fit to the dynamics of...