Entry Strategy and Survival of De Novo New Ventures

Publication Type

Conference Paper

Publication Date

10-2006

Abstract

This paper provides an integrated analysis on de novo entrants, linking their management experience, strategic orientation and market entry decisions to their survival in a single analysis. We rely on a census of new ventures in the intra-European scheduled airline industry. Contrary to predictions in the existing literature, we find that those entrants focusing on new as opposed to existing markets report significantly higher chances of survival than their peers. Given the industrial context, we expected a low-cost orientation to enhance survivability among new entrants but did not find evidence of this as a viable entry strategy. Finally, contrary to existing evidence, entrant survivability does not improve as with time. Instead, it is aided significantly by prior management experience in the industry.

Keywords

new entrant survival, market entry, airline industry

Discipline

Entrepreneurial and Small Business Operations | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Strategic Management Society Annual International Conference 2006, October

City or Country

Vienna, Austria

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