TY - JOUR
T1 - Small entrants and large incumbents: A framework of micro entry
AU - Markman, G.
AU - Waldron, Theodore
PY - 2014
Y1 - 2014
N2 - Translating a diverse body of research, including industrial organization economics, strategy, and entrepreneurship, we present a framework of micro entry—specifically, how de novo entrants penetrate markets dominated by large incumbents without intensifying rivalry. Entrant–incumbent relations has received substantial attention in these three literatures, but with a few exceptions, prior research has focused mainly on hostile entry and on large or comparable players. We explain, however, that acute size differences create distinct entrant–incumbent dynamics. Normatively, we show how, when, and where micro entrants are most likely to penetrate markets dominated by large incumbents. Conceptually, we expand resource partitioning and mutual forbearance theories by relaxing their assumptions and then remeshing their logic, thus offering nuanced insights on entrant–incumbent relations when size differences are very large. Contrary to the creative-destructive hypothesis, we evince that mark
AB - Translating a diverse body of research, including industrial organization economics, strategy, and entrepreneurship, we present a framework of micro entry—specifically, how de novo entrants penetrate markets dominated by large incumbents without intensifying rivalry. Entrant–incumbent relations has received substantial attention in these three literatures, but with a few exceptions, prior research has focused mainly on hostile entry and on large or comparable players. We explain, however, that acute size differences create distinct entrant–incumbent dynamics. Normatively, we show how, when, and where micro entrants are most likely to penetrate markets dominated by large incumbents. Conceptually, we expand resource partitioning and mutual forbearance theories by relaxing their assumptions and then remeshing their logic, thus offering nuanced insights on entrant–incumbent relations when size differences are very large. Contrary to the creative-destructive hypothesis, we evince that mark
U2 - 10.5465/amp.2011.0112
DO - 10.5465/amp.2011.0112
M3 - Article
SP - 179
EP - 197
JO - Academy of Management Perspectives
JF - Academy of Management Perspectives
ER -