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The survival of new domestic and foreign-owned firms

By: MATA, Jose.
Contributor(s): PORTUGAL, Pedro.
Material type: materialTypeLabelArticlePublisher: 2002Subject(s): Exit | Foreign FirmsStrategic Management Journal 23, 4, p. 323-343Abstract: We compare the survival of new domestic and foreign-owned firms. We analyze the determinants of the survival of new firms and investigate whether foreignness accounts for significant differences in the survival of new foreign and new domestic firms. We find survival to be determined by onwnership advantages, size and growth strategies, the internal organization of firms, and by industry characteristics such as economies of scale, and industry entry and growth. After controlling for these characteristics, we find that domestic and foreign firms do not exhibit different chances of surviva, that they respond in similar fashions to the determinantes of survival and display identical time patterns of exit
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We compare the survival of new domestic and foreign-owned firms. We analyze the determinants of the survival of new firms and investigate whether foreignness accounts for significant differences in the survival of new foreign and new domestic firms. We find survival to be determined by onwnership advantages, size and growth strategies, the internal organization of firms, and by industry characteristics such as economies of scale, and industry entry and growth. After controlling for these characteristics, we find that domestic and foreign firms do not exhibit different chances of surviva, that they respond in similar fashions to the determinantes of survival and display identical time patterns of exit

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