Title
Inter-firm rivalry and firm growth: Is there any evidence of direct competition between firms?
Date Issued
01 April 2013
Access level
open access
Resource Type
journal article
Author(s)
Teruel M.
Aalborg University
Publisher(s)
Oxford University Press
Abstract
Inter-firm competition has received much attention in the theoretical literature, but recent empirical work suggests that the growth rates of rival firms are uncorrelated. We begin by investigating the correlations of the growth rates of competing firms (i.e. the largest and second-largest firms in the same industry) and observe that, surprisingly, the growth of these firms can be taken as uncorrelated. Nevertheless, peer-effect regressions, that take into account the simultaneous interdependence of growth rates of rival firms, are able to identify significant negative effects of rivals' growth on a firm's growth © The Author 2012. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved.
Start page
397
End page
425
Volume
22
Issue
2
Language
English
OCDE Knowledge area
Economía
Negocios, Administración
Scopus EID
2-s2.0-84875589695
Source
Industrial and Corporate Change
ISSN of the container
09606491
DOI of the container
10.1093/icc/dts018
Source funding
Bremerhavener Gesellschaft für Investitionsförderung und Stadtentwicklung
Economic and Social Research Council
Ministerio de Ciencia e Innovación
Sponsor(s)
We are very much indebted to Harald Oberhofer and Michael Pfaffermayr for invaluable help with the peer-effects econometrics, and also to Rob Byrne, Tim Hazledine, Mike Hopkins, Mikael Juselius, Alessio Moneta, Jan-Willem Stoelhorst, David Storey, Nick von Tunzelmann, and participants at the Ratio Institute workshop on “Understanding firm growth” (Stockholm, August 12–13, 2010), the ZEW conference on “Quantitative analysis in competition assessments” (Mannheim, October 21–22, 2010), EAEPE 2011 (Vienna), ENEF 2011 (Strasbourg), and seminar participants at the Max Planck Institute of Economics (Jena, Germany) and at Alcalá de Henares for helpful discussions. Alex Coad gratefully acknowledges financial support from the ESRC, TSB, BIS and NESTA on grants ES/H008705/1 and ES/ J008427/1 as part of the IRC distributed projects initiative, as well as from the AHRC as part of the FUSE project. Mercedes Teruel gratefully acknowledges financial support of the Spanish Ministry of Innovation and Science in the project ECO2009-08735 and the Consolidated Group of Research 2009-SGR-907. The usual disclaimer applies.
Sources of information:
Directorio de Producción Científica
Scopus