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Pre-entry experience, post-entry learning and firm survival: Evidence from the local area networking switch industry

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  • Fontana, Roberto
  • Nesta, Lionel

Abstract

We investigate the influence of pre-entry experience and learning on firm survival for a sample of 121 innovative firms in the LAN switch industry. We find that experience gained prior to entry into markets, and idiosyncratic, persistent, and time independent firm attributes are important determinants of firms' survival. However, the effect of pre-entry experience diminishes as firms gain post-entry experience. This finding leads to the conclusion that the window of opportunity for small firms to assimilate the necessary complementary assets and ultimately outperform incumbents is very narrow.

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Bibliographic Info

Article provided by Elsevier in its journal Structural Change and Economic Dynamics.

Volume (Year): 21 (2010)
Issue (Month): 1 (March)
Pages: 41-49

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Handle: RePEc:eee:streco:v:21:y:2010:i:1:p:41-49

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Web page: http://www.elsevier.com/locate/inca/525148

Related research

Keywords: Entry and exit Industrial dynamics Telecommunication switches;

References

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  1. Guimaraes, Paulo & Mata, José & Portugal, Pedro, 1995. "The Survival of New Plants: Start-up Conditions and Post-entry Evolution," CEPR Discussion Papers 1203, C.E.P.R. Discussion Papers.
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  14. Audretsch, David B., 1995. "Innovation, growth and survival," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 441-457, December.
  15. Pier Saviotti & Andreas Pyka, 2008. "Micro and macro dynamics: Industry life cycles, inter-sector coordination and aggregate growth," Journal of Evolutionary Economics, Springer, vol. 18(2), pages 167-182, April.
  16. April Mitchell Franco & Darren Filson, 2006. "Spin‐outs: knowledge diffusion through employee mobility," RAND Journal of Economics, RAND Corporation, vol. 37(4), pages 841-860, December.
  17. Saviotti, Pier Paolo, 2007. "On the dynamics of generation and utilisation of knowledge: The local character of knowledge," Structural Change and Economic Dynamics, Elsevier, vol. 18(4), pages 387-408, December.
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