Entry and exit in disequilibrium

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dc.contributor.author Burke, Andrew -
dc.contributor.author van Stel, André -
dc.date.accessioned 2014-05-31T04:00:45Z
dc.date.available 2014-05-31T04:00:45Z
dc.date.issued 2014-01-01T00:00:00Z -
dc.identifier.citation Andrew Burke, André van Stel, Entry and exit in disequilibrium, Journal of Business Venturing, Volume 29, Issue 1, January 2014, Pages 174–192
dc.identifier.issn 0883-9026 -
dc.identifier.uri http://dx.doi.org/10.1016/j.jbusvent.2013.02.004 -
dc.identifier.uri http://dspace.lib.cranfield.ac.uk/handle/1826/8485
dc.description.abstract Most entrepreneurship theory depicts disequilibrium as the most common state for entrepreneurial activity and yet remarkably very little empirical research investigates the role of entry and exit in this type of external environment. Drawing on economics and organizational ecology we outline reasons why the interrelation between entry, exit and incumbent firms is likely to vary when the actual number of firms is higher or lower than the number that a market can sustain. We also introduce a new empirical methodology to explain entry and exit levels in two different types of disequilibria comprising situations when markets under and over shoot carrying capacity. Using a data set on the retail industry, we find that in undershoots a lack of competition between incumbent firms restores equilibrium by creating room for new-firm entry. In contrast, in overshoots competition induced by new firms (in particular strong displacement) restores equilibrium. We also find that equilibrium-restoring mechanisms are faster in over than undershoots. The results highlight that the behaviour and impact of entry and exit varies depending on the type of disequilibrium. en_UK
dc.language.iso en_UK -
dc.publisher Elsevier Science B.V., Amsterdam. en_UK
dc.rights NOTICE: this is the author’s version of a work that was accepted for publication in Journal of Business Venturing. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Business Venturing, Volume 29, Issue 1, January 2014, Pages 174–192. DOI: http://dx.doi.org/10.1016/j.jbusvent.2013.02.004
dc.title Entry and exit in disequilibrium en_UK
dc.type Article -

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