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Survival of New Plants in Different Industry Environments in Norwegian Manufacturing: A Semi-proportional Cox Model Approach

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  • Tveteras, Ragnar
  • Eide, Geir Egil

Abstract

Using a rich plant level data set from Norwegian manufacturing we analyse possible determinants of survival for ten plant cohorts during the period 1977-92. By specifying a semi- proportional hazards model of plant exit, we are able to accommodate for structural differences between entrepreneurial entrants and new plants of existing firms. Industry heterogeneity in terms of plant size, capital intensity and productivity is also accounted for in the model. According to our estimated models, there are significant structural differences between new small firms and new plants of existing firms. For example, the size of the plant relative to the industry average had less influence on the survival probability for entrepreneurial entrants. Hence, the empirical results suggest that the two types of entrants establish themselves in different market niches with distinct technological characteristics. The results underscore the necessity of adjusting for the dissimilar environments facing plants which enter different industries. Copyright 2000 by Kluwer Academic Publishers

Suggested Citation

  • 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.
  • Handle: RePEc:kap:sbusec:v:14:y:2000:i:1:p:65-82
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    Cited by:

    1. David B. Audretsch & Max Keilbach, 2006. "Entrepreneurship, Growth and Restructuring," Papers on Entrepreneurship, Growth and Public Policy 2006-13, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    2. Helena Persson, 2004. "The Survival and Growth of New Establishments in Sweden, 1987-1995," Small Business Economics, Springer, vol. 23(5), pages 423-440, October.
    3. Tobias Ebert & Thomas Brenner & Udo Brixy, 2015. "New Firm Survival: The Interdependence between Regional Externalities and Innovativeness," Working Papers on Innovation and Space 2015-05, Philipps University Marburg, Department of Geography.
    4. Rosanna Pittiglio & Filippo Reganati, 2015. "Multinational Enterprises, Technological Intensity and Firm Survival. Evidence from Italian Manufacturing and Services Firms," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 43(1), pages 87-106, March.
    5. Raquel Ortega-Argilés & Rosina Moreno, 2005. "Firm Competitive Strategies And The Likelihood Of Survival - The Spanish Case," ERSA conference papers ersa05p347, European Regional Science Association.
    6. Kimura, Fukunari & Fujii, Takamune, 2003. "Globalizing activities and the rate of survival:: Panel data analysis on Japanese firms," Journal of the Japanese and International Economies, Elsevier, vol. 17(4), pages 538-560, December.
    7. Harald Strotmann, 2007. "Entrepreneurial Survival," Small Business Economics, Springer, vol. 28(1), pages 87-104, January.
    8. Falck, Oliver, 2005. "Das Scheitern junger Betriebe: Ein Überlebensdauermodell auf Basis des IAB-Betriebspanels," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-32-05, University of Passau, Faculty of Business and Economics.
    9. Oliver Falck, 2005. "Survival Chances of Start-Ups - do Regional Conditions Matter?," ERSA conference papers ersa05p49, European Regional Science Association.
    10. Harald Strotmann, 2002. "Determinanten des Überlebens von Neugründungen in der badenwürttembergischen Industrie. Eine empirische Survivalanalyse mit amtlichen Betriebsdaten," IAW Discussion Papers 06, Institut für Angewandte Wirtschaftsforschung (IAW).
    11. Pe'er, Aviad & Vertinsky, Ilan, 2008. "Firm exits as a determinant of new entry: Is there evidence of local creative destruction?," Journal of Business Venturing, Elsevier, vol. 23(3), pages 280-306, May.
    12. Francine Lafontaine & Marek Zapletal & Xu Zhang, 2017. "Brighter Prospects? Assessing the Franchise Advantage using Census Data," Working Papers 17-21, Center for Economic Studies, U.S. Census Bureau.
    13. Marcus Box, 2008. "The death of firms: exploring the effects of environment and birth cohort on firm survival in Sweden," Small Business Economics, Springer, vol. 31(4), pages 379-393, December.

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