Perceptions regarding strategic and structural entry barriers

Clemens H. M. Lutz*, Ron G. M. Kemp, S. Gerhard Dijkstra

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

15 Citations (Scopus)
207 Downloads (Pure)

Abstract

This article uses factor analysis to identify the underlying dimensions of strategic and structural entry barriers. We find that, in the perception of firms, both types of barriers are important and that the effectiveness of strategic barriers depends on attributes of the market structure. Based on the seven generic factors, a conjoint analysis is carried out to identify the most important factors perceived by firms. The conjoint analysis shows that in particular the barriers rooted in three underlying dimensions require attention of market authorities as they may prevent new entrants from entry: capital, access to distribution channels and strategic action. Remarkably, government rules and regulations, product differentiation, research and development (R&D) and advertising constitute minor entry problems according to firms.

Original languageEnglish
Pages (from-to)19-33
Number of pages15
JournalSmall Business Economics
Volume35
Issue number1
DOIs
Publication statusPublished - Jul-2010

Keywords

  • Barriers to entry
  • SMEs
  • Antitrust policy
  • Entrepreneurship
  • CONJOINT-ANALYSIS
  • INCUMBENT FIRMS
  • SWITCHING COSTS
  • DETERRENCE
  • ENTREPRENEURSHIP
  • MARKETS
  • INVESTMENT
  • ECONOMIES
  • CONSUMER
  • CAPACITY

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