Who Do Start‐Up Firms Imitate? A Study of New Market Entries in the Clec Industry

14 Pages Posted: 3 Sep 2013

See all articles by Rich Gentry

Rich Gentry

University of Mississippi - Department of Management

Thomas Dalziel

University of Cincinnati - Department of Management

Mark A Jamison

University of Florida - Warrington College of Business Administration, Public Utility Research Center

Date Written: October 2013

Abstract

Institutional theory contends firms imitate other firms with ideal traits, whereas the strategic groups literature on imitation suggests firms imitate similar firms. We address this debate by studying 1,067 market entries by founder‐managed start‐ups in the U.S. Competitive Local Exchange Carrier industry from 1996 to 2004. In support of the strategic groups literature, start‐ups imitate entry decisions of and gravitate toward markets that are densely populated by other start‐ups. Though start‐ups avoid markets already densely populated by corporate ventures, they imitate the market entries of corporate ventures. Our discussion of these and other findings provide insights for start‐ups navigating new industries.

Suggested Citation

Gentry, Richard J. and Dalziel, Thomas and Jamison, Mark A., Who Do Start‐Up Firms Imitate? A Study of New Market Entries in the Clec Industry (October 2013). Journal of Small Business Management, Vol. 51, Issue 4, pp. 525-538, 2013, Available at SSRN: https://ssrn.com/abstract=2319640 or http://dx.doi.org/10.1111/jsbm.12055

Richard J. Gentry (Contact Author)

University of Mississippi - Department of Management ( email )

United States
662-259-0163 (Phone)

HOME PAGE: http://faculty.bus.olemiss.edu/rgentry/

Thomas Dalziel

University of Cincinnati - Department of Management ( email )

United States

Mark A. Jamison

University of Florida - Warrington College of Business Administration, Public Utility Research Center ( email )

PO Box 117142
Gainesville, FL 32611
United States
352-392-6148 (Phone)
352-392-7796 (Fax)

HOME PAGE: http://warrington.ufl.edu/purc/facultyinfo.asp?WEBID=1217

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