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SURVIVAL AND GROWTH IN RETAIL AND SERVICE INDUSTRIES: EVIDENCE FROM FRANCHISED CHAINS -super-

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  • RENÁTA KOSOVÁ
  • FRANCINE LAFONTAINE

Abstract

Abstract Using data on franchised chains, which are the type of single-product entities emphasized in industry dynamics models, we show that age and size affect growth and survival even after controlling for chain characteristics and unobserved chain-specific efficiency. This implies that age and size affect firm growth and survival for reasons other than those emphasized in learning-type models. We also find that several chain characteristics affect growth and survival directly, and thus controlling for firm characteristics is important. Finally, we find that chain size increases rather than decreases exit among young chains, and chains converge in size over time. Copyright 2010 The Authors. The Journal of Industrial Economics 2010 Blackwell Publishing Ltd. and the Editorial Board of The Journal of Industrial Economics.

Suggested Citation

  • Renáta Kosová & Francine Lafontaine, 2010. "SURVIVAL AND GROWTH IN RETAIL AND SERVICE INDUSTRIES: EVIDENCE FROM FRANCHISED CHAINS -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 58(3), pages 542-578, September.
  • Handle: RePEc:bla:jindec:v:58:y:2010:i:3:p:542-578
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    Cited by:

    1. Marcelo Resende & Vicente Cardoso & Luis Otávio Façanha, 2016. "Determinants of survival of newly created SMEs in the Brazilian manufacturing industry: an econometric study," Empirical Economics, Springer, vol. 50(4), pages 1255-1274, June.
    2. Nathan Yang, 2011. "An Empirical Model of Industry Dynamics with Common Uncertainty and Learning from the Actions of Competitors," Working Papers 11-16, NET Institute.
    3. Baumöhl, Eduard & Iwasaki, Ichiro & Kočenda, Evžen, 2017. "Firm Survival in New EU Member States," CEI Working Paper Series 2017-5, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    4. Luis Otávio Facanha & Marcelo Resende & Vicente Cardoso & Bruno H. Schröder, 2011. "Survival of New Firms in the Brazilian Franchising Segment: An Empirical Study," CESifo Working Paper Series 3388, CESifo Group Munich.
    5. repec:kap:sbusec:v:50:y:2018:i:4:d:10.1007_s11187-017-9890-6 is not listed on IDEAS
    6. Taelim Choi & Anil Rapusinga & John C. Robertson & Nancy Green Leigh, 2017. "The Effects of High Growth on New Business Survival," The Review of Regional Studies, Southern Regional Science Association, vol. 47(1), pages 1-23, Winter.
    7. Andrew Eckert & Douglas West, 2008. "Firm Survival and Chain Growth in a Privatized Retail Liquor Store Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 32(1), pages 1-18, February.
    8. repec:eee:jouret:v:89:y:2013:i:2:p:126-139 is not listed on IDEAS
    9. Guimarães Barbosa, Evaldo, 2016. "The relationships between, on the hand, size, growth and age of the firm and, on the other hand, small business survival – a constructive critique and a proposal of a new framework," MPRA Paper 72111, University Library of Munich, Germany.
    10. repec:gam:jsusta:v:9:y:2017:i:8:p:1419-:d:107916 is not listed on IDEAS
    11. Toivanen, Otto & Waterson, Michael, 2011. "Retail Chain Expansion: The Early Years of McDonalds in Great Britain," CEPR Discussion Papers 8534, C.E.P.R. Discussion Papers.
    12. repec:kap:sbusec:v:50:y:2018:i:4:d:10.1007_s11187-017-9892-4 is not listed on IDEAS
    13. Nathan E. Wilson, 2016. "For-profit status and industry evolution in health care markets: evidence from the dialysis industry," International Journal of Health Economics and Management, Springer, vol. 16(4), pages 297-319, December.
    14. Kosová, Renáta & Lafontaine, Francine, 2012. "Much ado about chains: A research agenda," International Journal of Industrial Organization, Elsevier, vol. 30(3), pages 303-308.
    15. repec:eee:jouret:v:93:y:2017:i:3:p:350-368 is not listed on IDEAS
    16. Francesco Baldi, 2016. "Multi-unit franchising strategies: a real options logic," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(2), pages 175-217, June.
    17. repec:kap:sbusec:v:50:y:2018:i:1:d:10.1007_s11187-017-9885-3 is not listed on IDEAS

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