Postentry Performance of Taiwanese Electronic Producers

• Main Authors: Wu, Ming-Meei, 吳明美
• Other Authors: Tzyy-Jane Lay
• Format: Others
• Language: zh-TW
• Published: 1996
• Online Access: http://ndltd.ncl.edu.tw/handle/12153167045881236648

碩士 === 淡江大學 === 產業經濟學系 === 84 === In the industrial economics, the entry of firms is the source of marketcompetition, so economists always put their emphasis on the entry behaviorof firms. The paper discusses the postentry performance of entering firms,and adopts the empirical data of industrial and commercial census of Taiwanduring 1986 and 1982. According to the type of entrants and the number ofemployees of the firms, this paper separates the entrants into fourcategories-big and new firms, big and switching firms, small and new firms,and small and switching firms. Besides, this paper compares the basiccharacteristics of the entrant and incumbents, and traces the postentryperformance of heterogeneous entrants. Furthermore, guided by the Learning Theory developed by Jovanovic(1982),we design an empirical model to summarize the incidence and the postentryperformance of entering firms. The primary findings are as follows: 1. According to the entry rate and entry penetration, although thenumber of big entrants is less than the small ones, the contribution ofoutput of the former is larger than the latter. Only an examination of thenumber of firms is likely to exaggerate the effect of entry on the structureof industry. 2. The performance of entering firms is observed from three aspects: thechange of the number of firms, the change of their market share, and theeffect of the initial size of entering firms. The firm share and marketshare of each entering cohort decline in each year following entry, but thedeclining speed decreases as the cohort age increases. Although theperformance of big entrant was superior than the small ones as they entered,the latter has better performance than the former as it accumulates enough business experience. 3. The survival abilities of entering cohort and the relationshipbetween the probability of exit of firms and the age are in concordance withthe theory. As the firms age, the declining speed of survival rate ofentering cohort and the hazard rate of typical firms will decrease.