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Patterns of Entry, Post-Entry Growth and Survival: A Comparison Between Domestic and Foreign Owned Firms

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Author Info
JosÈ Mata ()
Pedro Portugal

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Abstract

This study compares the patterns of entry, survival and growth of domestic and foreign owned firms. We show that the post-entry behavior of foreign owned firms is quite different from that of their domestic counterparts. Among foreign entrants, we were able to distinguish between those which proceed by creating a new firm and those that acquire an already existing business. Our evidence reveals that the choice of the mode of entry in foreign markets exerts an impact upon the performance of firms that persists long after the moment of entry. As a consequence, our work clearly indicates that there is much to be gained in the understanding of the process of entry in foreign markets by studying the behavior of entrants over their first years in these markets.

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Publisher Info
Article provided by Springer in its journal Small Business Economics.

Volume (Year): 22 (2004)
Issue (Month): 3_4 (04)
Pages: 283-298
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Handle: RePEc:kap:sbusec:v:22:y:2004:i:3_4:p:283-298

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Web page: http://www.springerlink.com/link.asp?id=100338

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  1. Almeida, Rita, 2003. "The Effects of Foreign Owned Firms on the Labor Market," IZA Discussion Papers 785, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Koen De Backer & Leo Sleuwaegen, 2003. "Does Foreign Direct Investment Crowd Out Domestic Entrepreneurship?," Review of Industrial Organization, Springer, vol. 22(1), pages 67-84, February. [Downloadable!] (restricted)
    Other versions:
  3. Richard I.D. Harris & Qian Cher Li, . "Export-market dynamics and the probability of firm closure: Evidence for the UK," Working Papers 2008_17, Department of Economics, University of Glasgow. [Downloadable!]
  4. Rita Almeida, 2004. "The labor market effects of foreign-owned firms," Policy Research Working Paper Series 3300, The World Bank. [Downloadable!]
    Other versions:
  5. Christian Bellak, 2001. "Multinational Enterprises and Their Domestic Counterparts: Past Research, Current Issues and Future Directions," Working Papers geewp18, Vienna University of Economics and B.A. Research Group: Growth and Employment in Europe: Sustainability and Competitiveness. [Downloadable!]
  6. Koen de Backer, 2002. "Does Foreign Direct Investment Crowd Out Domestic Entrepreneurship?," Economics Working Papers 618, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  7. Miguel Lebre de Freitas & Ricardo Paes Mamede, 2008. "Structural Transformation and the role of Foreign Direct Investment in Portugal: a descriptive analysis for the period 1990-2005," GEE Papers 0009, Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação, revised Dec 2008. [Downloadable!]
  8. Christian Bellak, 2004. "How Domestic and Foreign Firms Differ and Why Does It Matter?," Department of Economics Working Papers wuwp087, Vienna University of Economics and B.A., Department of Economics. [Downloadable!]
    Other versions:
  9. Mamede, Ricardo, 2005. "Brand effects, mobility costs and industry evolution," MPRA Paper 3998, University Library of Munich, Germany. [Downloadable!]
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