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Wejscia na rynek nowych firm a konkurencyjnosc przedsiebiorstw istniejacych (The entrance of new companies into a??market versus the competitiveness of existing market players)

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  • Aleksandra Gawel

    (Katedra Konkurencyjnosci Miedzynarodowej, Uniwersytet Ekonomiczny w Poznaniu)

Abstract

Theoretical models do not give a??satisfying and conclusive answer to the question how the growing pressure on the market resulting from increased entrepreneurial activities will affect the competitiveness of established companies. Both positive and negative arguments can be presented in regards to the effect of new entrants on existing market players. One opinion is that the success or failure of companies already on the market is what attracts new entrants. The aim of the paper is to verify the relationship between the entrance of new companies into a market and the competitiveness of existing market players. In an attempt to settle the matter, econometric research was conducted on the competitiveness of existing companies in the various Polish regions, and also on the rate at which new companies were established. The time period for the research was 2005–2016. The results of the research indicate a lack of relationship between the entrance of new companies into a??market and the competitiveness of existing ones. The parameters of regression functions were statistically insignificant. Which in turn indicates that new company creation, and the development of a competitive position by existing companies happen separately from each other. The belief that entrepreneurship is crucial to economic growth has led to increased interest in aspects of domestic policy which would encourage the creation of new businesses. Research results let to suppose that policy supporting process of new company creation should not negatively influence the existing market players by raising the competitive pressure.

Suggested Citation

  • Aleksandra Gawel, 2018. "Wejscia na rynek nowych firm a konkurencyjnosc przedsiebiorstw istniejacych (The entrance of new companies into a??market versus the competitiveness of existing market players)," Research Reports, University of Warsaw, Faculty of Management, vol. 2(29), pages 7-17.
    • Handle: RePEc:sgm:resrep:v:2:i:29:y:2018:p:7-17
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    File URL: http://www.sim.wz.uw.edu.pl/sites/default/files/artykuly/sim_2018_2_2_a_gawel.pdf
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    References listed on IDEAS

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    1. Ivan Turok, 2004. "Cities, Regions and Competitiveness," Regional Studies, Taylor & Francis Journals, vol. 38(9), pages 1069-1083.
    2. Pei-Chou Lin & Deng-Shing Huang, 2008. "Technological Regimes and Firm Survival: Evidence Across Sectors and Over Time," Small Business Economics, Springer, vol. 30(2), pages 175-186, February.
    3. Michael Peneder, 2008. "Firm entry and turnover: the nexus with profitability and growth," Small Business Economics, Springer, vol. 30(4), pages 327-344, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    entrepreneurial process; competitiveness of companies; threat of new entrance; Polish regions;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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