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Market delimitation, firm survival and growth in service industries

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  • Ramón Rufín
  • Cayetano Medina

Abstract

This article focuses on the effect of both firm survival and market delimitation on stochastic growth behaviour in the realm of service industries. Two samples of firms were selected for the study, one of them representing the surviving firm population in the tourism industry and the other one representing the firm total. The activity of firms was used for measuring the influence of market delimitation. Stochastic growth behaviour is found to hold for the sector as a whole, whereas it does not do so for the population of surviving firms. Market delimitation is also observed to influence growth behaviour, but only when combined with firm survival.

Suggested Citation

  • Ramón Rufín & Cayetano Medina, 2008. "Market delimitation, firm survival and growth in service industries," The Service Industries Journal, Taylor & Francis Journals, vol. 30(9), pages 1401-1417, September.
    • Handle: RePEc:taf:servic:v:30:y:2008:i:9:p:1401-1417
    DOI: 10.1080/02642060802621494
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