Startups Market Entry and Industry competitivness

What is it about?

We show that startups operating in moderately competitive industries will have a greater propensity to compete with incumbents relative to startups operating noncompetitive or highly competitive industries (where they will prefer cooperation). In addition, more innovative startups are more likely to compete in highly competitive industries than less innovative ones, but are more likely to cooperate with incumbents in noncompetitive industries relative to less innovative startups.

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Why is it important?

It is the first study to relate between industry competition level and the entry modes of startups. As such it provides advice as to in which startups are more likely to compete with incumbents or cooperate with them and how their relative innovative influences the tendency of startups to compete or cooperate.