Entry, barriers, exit, and sunk costs: an analysis

Rosenbaum, David I.; Lamort, Fabian

doi:10.1080/00036849200000142

Cited by 84 publications

(56 citation statements)

References 11 publications

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“…This also connects strongly with views from locality studies, where it is underlined that the particularity of places creates specific relationships and establishes long-term causalities at that particular place which are hard to reproduce elsewhere (Cox and Mair, 1989). These forces of locational inertia are strengthened by sunk costs as argued by Rosenbaum and Lamort (1992) and Kessides (1990). The institutionalist approach assumes that economic activity is socially and institutionally situated and therefore shaped by the cultural institutions of society (Thrift and Olds, 1996).…”

Section: Locational Inertia and Hypothesesmentioning

confidence: 87%

“…Older firms often have a more secure market position due to their increased capacities. The inertia of firms is also generated by sunk costs, existing networks and investments in location and durable goods (RangerMoore, 1997; Rosenbaum and Lamort, 1992). Furthermore, firms invested over time in visual reliability, such as location and premises: changes in these can undermine the legitimation of a firm (Delacroix and Swaminathan, 1991).…”

Section: Locational Inertia and Hypothesesmentioning

confidence: 99%

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The Old and the Stubborn? Firm Characteristics and Relocation in the Netherlands

Brouwer

2010

ESR&P

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This study gives some insight into the relationships between the spatial environment, firm characteristics and long term existence of firms in the Netherlands. A logit model is employed to investigate the locational difference of firms, considering firm characteristics such as age, size, region and network. The main findings are that (long-term) continuation of the location and firm size are positively associated with long-term existence of firms.

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Section: Locational Inertia and Hypothesesmentioning

confidence: 87%

Section: Locational Inertia and Hypothesesmentioning

confidence: 99%

The Old and the Stubborn? Firm Characteristics and Relocation in the Netherlands

Brouwer

2010

ESR&P

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“…Patch, 1995, 84), prospering growth in the national economy, in the particular region or industry may be conducive to economic success and survival (Audretsch, 1995, 70-73;Boeri and Bellmann, 1995;Rosenbaum and Lamort, 1992). However, the relative importance of the different levels is unclear: is regional prosperity more significant for survival than the national development or vice versa?…”

Section: Hypothesesmentioning

confidence: 99%

The Effect of Industry, Region, and Time on New Business Survival – A Multi-Dimensional Analysis

2006

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“…A lthough industry exit often brings the negative connotation of failure (Decker & Mellewigt, 2007), it is worthy of study because it is a crucial requirement for creation, resource reallocation, industry evolution, and strategic reorientation to occur (Rosenbaum & Lamort, 1992;Burgelman, 1996;Chang, 1996;Geroski, 2003;Adner & Levinthal, 2004). Despite its importance, industry exit, in particular the exit process, has not been widely studied from a managerial perspective (Evans & Siegfried, 1992;Burgelman, 1996;Brauer, 2006;Decker & Mellewigt, 2007;Elfenbein & Knott, 2015).…”

Section: Introductionmentioning

confidence: 99%

The process of industry exit in the Japanese context: Evidence from the flat panel display industry

Lehmberg

2016

Journal of Management & Organization

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This research studies industry exit in the Japanese context, by examining the process followed five Japanese flat panel display manufacturers as they de-committed to and later exited from the industry. The five cases examine firms with systematically different exit barriers due to the presence or absence of strategic centrality and vertical integration in each firm. With one exception, all the firms followed multi-staged exit processes involving cooperative arrangements with other industry participants. Firms with middle to high levels of commitment and exit barriers went through more steps in the process than those with the lowest levels of commitment. The effect of top management succession and long-term employment upon the exit process are considered, and the role of cooperative arrangements in reducing exit barriers are discussed.

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Entry, barriers, exit, and sunk costs: an analysis

Cited by 84 publications

References 11 publications

The Old and the Stubborn? Firm Characteristics and Relocation in the Netherlands

The Old and the Stubborn? Firm Characteristics and Relocation in the Netherlands

The Effect of Industry, Region, and Time on New Business Survival – A Multi-Dimensional Analysis

The process of industry exit in the Japanese context: Evidence from the flat panel display industry

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