The dynamics of evolving markets: the effects of business sales and age on dissolutions and divestitures.

Data from seven U.S. medical sector product markets established from the 1950s to the 1980s were used to study how firms in evolving industries exit a product market. Variables considered were firms' level of sales, age, and status as either a start-up business upon entering the market or a diversi...

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Publicado en:Administrative Science Quarterly Vol. 39; pp. 575 - 603
Autor principal: Mitchell, Will
Formato: Artículo
Publicado: Administrative Science Quarterly December 1994
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      dt: December 1994
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      pub: Administrative Science Quarterly
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        atl: The dynamics of evolving markets: the effects of business sales and age on dissolutions and divestitures.
      aug:
        au: Mitchell, Will
      su:
        Organizational change
        Market penetration
        Business failures
        Diversification in industry
        New business enterprises
        Medical instruments & apparatus industry
        United States
      sug:
        subj:
          United States
          Organizational change
          Market penetration
          Business failures
          Diversification in industry
          New business enterprises
          Medical instruments & apparatus industry
      ab: Data from seven U.S. medical sector product markets established from the 1950s to the 1980s were used to study how firms in evolving industries exit a product market. Variables considered were firms' level of sales, age, and status as either a start-up business upon entering the market or a diversifying existing firm. The results demonstrate that sales and age differ systematically by type of entrant and exit. The dissolution rate was found to decline as sales increase, though the rate was not affected by age when the level of sales was controlled. On the other hand, start-up firms and diversifying entrants were more likely to sell their businesses over time, while sales levels had no effect on divestiture rate. When age, sales, and other business and corporate characteristics were controlled, little difference was found in the dissolution rate of start-ups and diversifying entrants, but diversifying entrants were more likely to sell.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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