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Exit and Entry over the Product Life Cycle: Evidence from the Swedish Manufactur­ing In­dustry
University West, School of Business, Economics and IT, Divison of Law, Economics, Statistics and Politics.ORCID iD: 0000-0002-1315-9753
RATIO, Stockholm.
2003 (English)In: Small Business Economics, ISSN 0921-898X, E-ISSN 1573-0913, Vol. 21, no 2, p. 135-144Article in journal (Refereed) Published
Abstract [en]

In this paper the process of exit and entry of firms in the Swedish manufacturing industry is investigated within the framework of the product life cycle. The product life cycle theory explains how the high degree of uncertainty, as regards product designs and production methods, which is connected to the early stages of the product life cycle requires a high level of knowledge-intensity. Since uncertainty decrease over the product life cycle, less knowledge is needed in production during later stages of the product life cycle. This implies that knowledge-intensity differs for firms that exit and enter in different stages of the product life cycle. Four hypotheses regarding these relationships are stated and empirically tested in this paper, using data at the 5-digit SIC-level for the Swedish manufacturing industry during 1990–1996. The empirical results show that entrants in the early stages of the product life cycle are more knowledge-intensive than incumbent firms. It is also found that firms exiting in early stages of the product life cycle are more knowledge-intensive than firms exiting in later stages.

Place, publisher, year, edition, pages
Springer-Verlag New York, 2003. Vol. 21, no 2, p. 135-144
Keywords [en]
Product life cycle
National Category
Economics Business Administration Other Engineering and Technologies not elsewhere specified
Research subject
SOCIAL SCIENCE, Economics
Identifiers
URN: urn:nbn:se:hv:diva-4023DOI: 10.1023/A:1025067906102OAI: oai:DiVA.org:hv-4023DiVA, id: diva2:476703
Available from: 2012-01-12 Created: 2012-01-12 Last updated: 2019-11-14Bibliographically approved

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