Survival and Growth in Retail and Service Industries: Evidence From Franchised Chains*
Year: 2010
Type: article
Abstract: Using data on franchised chains, which are the type of single‐product entities emphasized in industry dynamics models, we show that age and size affect growth and survival even after controlling for chain characteristics and unobserved chain‐specific efficiency. This implies that age and size affect firm growth and survival for reasons other than those emphasized in learning‐type models. We also find that several chain characteristics affect growth and survival directly, and thus controlling for firm characteristics is important. Finally, we find that chain size increases rather than decreases exit among young chains, and chains converge in size over time.
Source: Journal of Industrial Economics
Authors: RENÁTA KOSOVÁ, FRANCINE LAFONTAINE
Institutions: Cornell University, University of Michigan
Language: English
Topic: Firm Innovation and Growth
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3124019491