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The purpose of this study is to offer explanations of the wide variation in the impact of market size on new market entry decisions – i.e. its positive impact lessens because of unreliable predictability of market size on post-entry profit and entry motivations other than post-entry profit.

On the basis of the two explanations, this paper builds a contingency frame that the impact of market size on new market entry depends on entry-context-specific variables. It validates the contingency frame, empirically analyzing 219 parameter estimates of the impact of market size on market entry obtained from 41 existing empirical studies.

The meta-analysis results reveal that the entry-context-specific variables used in this study – niche market entry, high-tech market entry, entry by industry incumbent firms and the year of market entry – notably moderate the impact of market size on new market entry decisions, as the research frame suggests.

This study examines the various literature and study outcomes in the areas of marketing, economics and strategy to elucidate whether and when market size is a critical driver of new market entry. In most cases, the greater the new market size, the greater is the propensity to enter the market. However, the contingency arguments stated in this paper suggest that firms may and do enter a new market even if the market size is not large at the time of entry.

This paper enhances the understanding of the relative importance of market size in market entry decisions, which depend on various entry contexts. It clarifies the direction and magnitude of the impact of such entry contexts.

States that it is critical that incumbent firms understand the processes that enhance or inhibit entry of new firms into their industry. A new entrant into an industry may create additional demand by legitimizing the technology/products, and/or may share the existing market by drawing buyers away from incumbents. An analysis of market entry rates is especially important in new, high technology industries where sub‐groups of firms pursue different technology and global market diversification strategies because such sub‐groups may have asymmetrical cross‐effects on entry rates of new firms. Suggests a community ecology approach to assessing the impact of industry density on new firm entry rates. The framework is demonstrated by applying it to the global personal computer industry during the period of 1977‐1992. Results suggest that density has a nonmonotonic positive effect, while the firm‐level variables of technological strategy and market expansion strategies have a monotonic positive effect on new firm entry rates.

New industries are created from the pioneering activities of a few firms. These firms generally face great uncertainty and risk, but also stand to benefit from early mover advantages due to the preemption of resources. Based on an empirical analysis of a diverse set of consumer and industrial innovations introduced in the U.S. over the past 100 years, we find that entrants during the pre-firm take-off stage (termed Creators) have higher survival rates than later entrants that enter between the firm and sales take-off (termed Anticipators), and both of these entrant types have higher survival rates than firms that enter after the sales take-off (termed Followers). Notably, survival rates for Creators and Anticipators do not depend on entry time within the cohort group, i.e. what matters is whether an entrant enters before or after the take-off, not whether it entered first in its cohort. Our results indicate that there is no real option value in waiting when one considers survival as a performance measure, which bodes well for firms interested in creating new industries.

Schumpeter claimed the entrepreneur to be instrumental for creative destruction and industrial dynamics. Entrepreneurial entry serves to transform and revitalize industries, thereby enhancing their competitiveness. The purpose of this paper is to investigate if entry of new firms influences productivity amongst incumbent firms, and the extent to which altered productivity can be attributed sector and time specific effects.

Implementing a unique dataset the paper estimates a firm‐level production function in which the productivity of incumbent firms is modeled as a function of firm attributes and regional entrepreneurship activity.

The analysis finds support for positive productivity effects of entrepreneurship on incumbent firms, albeit the effect varies over time, what the authors refer to as a “delayed entry effect”. An immediate negative influence on productivity is followed by a positive effect several years after the initial entry. Moreover, the productivity of incumbent firms in services sectors appears to be more responsive to regional entrepreneurship, as compared to the productivity of manufacturing firms.

The paper employs a firm‐level production function approach allowing for time lags of the effect of entrepreneurship. The unique data implemented allow the authors to identify genuinely new ventures as compared to those associated with reorganizations of existing businesses, thereby overcoming much of data deficiencies in previous studies. In addition, data are distributed on Swedish functional labor market regions.

Investigates the effects of technology standards on the changing nature of interdependence between competitors in a global industry. Drawing on the theory of organizational ecology, the effects of technology standards on the type of interplay among competitors are investigated as the underlying process affecting new firm entry. Empirical data from the global personal computer industry provide preliminary evidence that positive interdependence, or mutualism, characterizes the nature of competition before the establishment of a technology standard. Negative interdependence, or full competition, is found to prevail after a technology standard emerged. These findings suggest that the evolution of industries where compatibility and technological standards are critical can be analyzed in two different phases: the technological legitimation phase; and the market competition phase. A discussion of the underlying interdependencies in the two phases and their implications is also provided.

While extant entry theory has long prescribed a niche approach for new ventures, a preponderance of empirical research has found that broad strategies may be the key to new venture success. This study examines the difference between entry theory and empirical evidence by considering the moderating impact of initial financial resources on the effectiveness of venture strategy. Examining new, independent firms at the point of inception, we find that initial financial resources moderate the relationship between strategic breadth and performance, implying that the returns to a broad initial strategy increase with the level of initial capital. Contrary to popular niche prescriptions for new ventures, we did not find support for the belief that firms with low initial financial resources should pursue niche strategies and suggest that it may be time to re-examine theory on the nature of the relationship between entry strategies and performance.

The purpose of this paper is to explore the audit price reactions of local accounting firms to the entry of the Big Four accounting firms into the Indian audit market, providing unique insight into emerging market dynamics.

Using financial data from Indian audit clients for a ten-year period from 1996 to 2005, the authors conduct a multivariate regression analysis based on extant audit fee literature.

This study finds evidence of a price-cutting strategy on behalf of the local incumbent accounting firms in response to the entry of the Big Four firms. It also shows small-sized incumbent firms to cut prices more drastically relative to medium-sized incumbent firms.

This study provides empirical insight into the pricing dynamics of professional services in an emerging market setting. Such insight is increasingly important in our evermore globalized economy where emerging markets are frequently the targets of expansion.

The purpose is to investigate how a retailer identifies critical network actors and gains their support when entering an emerging market. and to examine the role of a firm's relationships with different types of actors on the new market.

The study is of an exploratory nature, and based on an inductive and qualitative research method. A case study of IKEA's entry into Russia and China was conducted.

It is argued that IKEA's entry into China and Russia was successful because of its dynamic utilization of matching and networking capabilities. The study explains how the support of relationships with, for example, political actors, interest groups and media supported the entry and the development of a positive consumer image.

This is a qualitative, in depth study and future research is needed in order to test the generalizability of the proposed framework and models.

The paper shows how retail managers can generate the support of different types of actors and relationships when entering new markets.

Traditionally consumer product firms' entry to new markets is regarded as a function of dealing with environmental, cultural and legal differences, and adapting products and strategies accordingly. This paper extends understanding by showing that matching and networking capabilities to mobilize resources, actors and activities on global, macro and micro levels are also critical components. It also relates the firm's business relationships with relationships to socio‐political actors on the new market.

This chapter provides a theoretical evaluation of entrepreneurial orientation (EO) to demonstrate some of its current shortcomings for being a construct to categorize entrepreneurial firms. To do this, we explore all the facets of how a firm can be entrepreneurial and the nuances of how firms can differ in their entrepreneurial approach, which EO currently does not capture. We argue that while EO’s rise in popularity stems from its simplicity, this simplicity has provided it with longevity challenges to keep up with evolving entrepreneurial behaviors within firms. We note these issues in hopes to extend the life of EO, and we provide future recommendations on how to put EO on that path.

This study examines the importance of 25 barriers to market entry in industrial markets. A survey of 93 firms indicates that majority of business executives consider cost advantages and capital requirements to enter markets as the two most important barriers to entry followed by incumbents having a superior production process, capital intensity of the market, and customer loyalty. The least important barriers perceived by the executives in the study are government licensing requirements, followed by heavy advertising. In addition, the study investigates the underlying dimensions of barriers to entry in industrial market through a factor analysis. The results indicate that there are four major underlying dimensions of entry barriers in industrial markets.