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Small Business Economics

, Volume 39, Issue 3, pp 575–585

First Online: 02 April 2011Accepted: 01 December 2010

Abstract

Although recent literature suggests that competition among incumbent firms is caused by the entry of new firms, this relationship has not yet been tested directly. In this study a regression model is established in which a direct measure of competition among incumbent firms, the market mobility rate, is explained by start-up rates and control variables. The results show that the effect of start-ups on market mobility varies by sector. There is a strong positive relationship for industry sectors but an insignificant relationship for service sectors. These results suggest differences in the types of entry between sectors and in the roles start-ups play in different sectors.

KeywordsStart-ups Incumbent firms Competition Market mobility JEL ClassificationsO18 L16 M13  Download fulltext PDF



Author: Sierdjan Koster - André van Stel - Mickey Folkeringa

Source: https://link.springer.com/







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