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NOTE: Since 2009 the title of the International Journal of Entrepreneurship Education (IJEE) has been changed to the title above.  ISSN numbers: IJEE 1649-2269 and IRE 2009-2822

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ISSN Number: 2009-2822. Frequency: 4 Issues per year (online only)  

Article #1596 - Market consolidation, market growth, or new market development? Owner, firm, and competitive determinants

IRE Vol 17: Issue 1, 2019 , Pages 17-36

Author(s): Marc Cowling (College of Business, Law and Social Science, University of Derby, UK), Weixi Liu (Bath Management School, University of Bath, UK), Wei Yue (Brighton Business School, UK) and Hang Do (Kingston Business School, University of Kingston, UK)

Market entry decisions are complex and involve high sunk costs with uncertain or risky outcomes. In this study we explore how the owner, firm, and competitive pressures shape this decision. Using a large UK data set of SMEs, we find that the preferred form of growth, and growth is not always desired, is expansion in existing markets. Key determinants of the decision to pursue a new market entry strategy are formal education, and large firm based market competition. Further, these decisions are made simultaneously not sequentially.