Plant scale in entry decisions: a comparison of start-ups and established firm entrants

Sam Hariharan and Thomas H. Brush
Additional contact information
Sam Hariharan: Marshall School of Business, University of Southern California, Los Angeles, CA 90089-1421, USA, Postal: Marshall School of Business, University of Southern California, Los Angeles, CA 90089-1421, USA
Thomas H. Brush: Purdue University, West Lafayette, IN 47906, USA, Postal: Purdue University, West Lafayette, IN 47906, USA

Managerial and Decision Economics, 1999, vol. 20, issue 7, 353-364

Abstract: This paper examines the competitive advantage enjoyed by established firms over start-up firms in their choice of plant scale when entering industries. We hypothesize that established firms will enter at smaller scale because they have the opportunity to substitute other resources and advantages for the cost disadvantages that result from small scale. We find that established firms enter with lower scale plants which suggests that they have access to resources that allow them to be competitive at lower scales. Copyright © 1999 John Wiley & Sons, Ltd.

Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:20:y:1999:i:7:p:353-364

DOI: 10.1002/1099-1468(199911)20:7<353::AID-MDE954>3.0.CO;2-M

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().