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Open to competition? Competitive density and the growth of young New Zealand ventures

Author

Listed:
  • D Hugh Whittaker

    (School of Interdisciplinary Area Studies, University of Oxford, Oxford, UK)

  • Benjamin Fath
  • Antje Fiedler

    (Graduate School of Management, The University of Auckland, Auckland, New Zealand)

Abstract

Drawing on 180 survey responses from young, New Zealand-based ventures, we investigate effects of the number of perceived serious competitors on venture growth. We find empirical evidence for an inverse U-shaped relationship between competitive density and young venture growth. We further find that persistent innovation – requiring both initial innovative intent and a recent record of innovation – not only promotes young growth but also moderates the relationship between competitive density and young venture growth. Overall, the study shows that the growth of young ventures committed to persistent innovation is less affected by competitive dynamics compared to non-innovators. JEL Classification: L10, L22, L26, O30

Suggested Citation

  • D Hugh Whittaker & Benjamin Fath & Antje Fiedler, 2020. "Open to competition? Competitive density and the growth of young New Zealand ventures," Australian Journal of Management, Australian School of Business, vol. 45(2), pages 343-358, May.
    • Handle: RePEc:sae:ausman:v:45:y:2020:i:2:p:343-358
    DOI: 10.1177/0312896219883914
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    References listed on IDEAS

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    More about this item

    Keywords

    Competitive density; growth; innovation; young ventures;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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