The entrance of new companies into a market versus the competitiveness of existing market players Cover Image

Wejścia na rynek nowych firm a konkurencyjność przedsiębiorstw istniejących
The entrance of new companies into a market versus the competitiveness of existing market players

Author(s): Aleksandra Gaweł
Subject(s): Social Sciences, Business Economy / Management
Published by: Wydawnictwo Naukowe Wydziału Zarządzania Uniwersytetu Warszawskiego
Keywords: entrepreneurial process; competitiveness of companies; threat of new entrance;Polish regions

Summary/Abstract: Theoretical models do not give a satisfying and conclusive answer to the question how the growing pressure on the market resulting from increased entrepreneurial activities will affect the competitiveness of established companies. Both positive and negative arguments can be presented in regards to the effect of new entrants on existing market players. One opinion is that the success or failure of companies already on the market is what attracts new entrants. The aim of the paper is to verify the relationship between the entrance of new companies into a market and the competitiveness of existing market players. In an attempt to settle the matter, econometric research was conducted on the competitiveness of existing companies in the various Polish regions, and also on the rate at which new companies were established. The time period for the research was 2005–2016. The results of the research indicate a lack of relationship between the entrance of new companies into a market and the competitiveness of existing ones. The parameters of regression functions were statistically insignificant. Which in turn indicates that new company creation, and the development of a competitive position by existing companies happen separately from each other. The belief that entrepreneurship is crucial to economic growth has led to increased interest in aspects of domestic policy which would encourage the creation of new businesses. Research results let to suppose that policy supporting process of new company creation should not negatively influence the existing market players by raising the competitive pressure.

  • Issue Year: 29/2018
  • Issue No: 2
  • Page Range: 7-17
  • Page Count: 11
  • Language: English, Polish