How Problems of Organisational Growth in Firms Affect Industry Entry and Exit

Buenstorf, Guido; Witt, Ulrich

doi:10.3917/reof.073.62

Industrial Dynamics

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Vous consultezHow Problems of Organisational Growth in Firms Affect Industry Entry and Exit

AuteursGuido Buenstorf du même auteur

Ulrich Witt du même auteur

Max Planck Institute of Economics, Jena, Germany

Résumé

Many newly emerging industries show similar patterns of development regarding entry and exit dynamics. This paper argues that several features of exit and new entry into industries through diversification and spinoff formation can be related to problems arising within firms when their organizations grow during the industry’s life cycle. Drawing on earlier work, the growth-induced learning and coordination problems of the firms are outlined and their impact at the industry level is discussed.
JEL Classification: L25, L59, O31.

Keywords

entry, exit, growth of firms over the industry life cycle, spinoff and diversification

PLAN DE L'ARTICLE

1 - Introduction
2 - Entrepreneurship, Cognitive Coordination and the Growing Firm
3 - New Entry into an Industry: Diversification and Spinoffs
4 - Conclusions

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