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Firm Competitive Strategies and the Likelihood of Survival. The Spanish Case

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Author Info
Raquel Ortega-Argilés
Rosina Moreno

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Abstract

This paper analyses the impact that some managerial competitive strategies followed by a firm may have on its survival. We have not only considered the classic strategies related to the passive learning process defined by Jovanovic (e.g., R&D or advertisement expenses), but we have also taken into account the active learning process ideas given by Ericson and Pakes. This way, we study the effect of product and process innovative strategies, with a detailed desegregation of their functions, on firm’s survival likelihood. Several non-parametric, semi-parametric and parametric techniques are computed to check the effect of the active learning theory on business survival in a set of Spanish manufacturing firms (1990-2001).

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Paper provided by Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy in its series Discussion Papers on Entrepreneurship, Growth and Public Policy with number 2007-05.

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Length: 29 pages
Date of creation: Feb 2007
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Handle: RePEc:esi:egpdis:2007-05

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Related research
Keywords: firm survival active learning theory duration analysis.

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Find related papers by JEL classification:
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
  3. Caves, R E & Porter, M E, 1977. "From Entry Barriers to Mobility Barriers: Conjectural Decisions and Contrived Deterrence to New Competition," The Quarterly Journal of Economics, MIT Press, vol. 91(2), pages 241-61, May. [Downloadable!] (restricted)
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  6. Jovanovic, Boyan & MacDonald, Glenn M, 1994. "The Life Cycle of a Competitive Industry," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 322-47, April. [Downloadable!] (restricted)
    Other versions:
  7. Becchetti, Leonardo & Trovato, Giovanni, 2002. " The Determinants of Growth for Small and Medium Sized Firms: The Role of the Availability of External Finance," Small Business Economics, Springer, vol. 19(4), pages 291-306, December. [Downloadable!] (restricted)
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  8. Agarwal, Rajshree & Audretsch, David B, 2001. "Does Entry Size Matter? The Impact of the Life Cycle and Technology on Firm Survival," Journal of Industrial Economics, Blackwell Publishing, vol. 49(1), pages 21-43, March. [Downloadable!] (restricted)
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  17. Mahmood, Talat, 1992. " Does the Hazard Rate for New Plants Vary between Low- and High-Tech Industries?," Small Business Economics, Springer, vol. 4(3), pages 201-09, September.
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  30. Tveteras, Ragnar & Eide, Geir Egil, 2000. " Survival of New Plants in Different Industry Environments in Norwegian Manufacturing: A Semi-proportional Cox Model Approach," Small Business Economics, Springer, vol. 14(1), pages 65-82, February. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Hielke Buddelmeyer & Paul H. Jensen & Elizabeth Webster, 2006. "Innovation and the Determinants of Firm Survival," IZA Discussion Papers 2386, Institute for the Study of Labor (IZA). [Downloadable!]
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