Barriers to entry: An empirical assessment of Portuguese firms’ perceptions

Barriers to entry: An empirical assessment of Portuguese firms’ perceptions

Entry
Barriers to entry
Strategic behaviour
Firms’ perceptions

This paper attempts to assess the variety and relevance of barriers to entry perceived by Portuguese firms. Based on a questionnaire, Portuguese firms’ perceptions were surveyed using a sample of 168
firms. The results suggest that sunk costs, capital requirements, capital costs, and cost disadvantages are the most important barriers to entry. Applying a factor analysis, six underlying dimensions of entry barriers – investment in R&D, strategic behaviour, investment risk, advertising, cost disadvantages, and
capacity – were identified. These findings are quite consistent among industries and firms’ sizes. Still, micro firms have lower perceptions regarding entry barriers than SMEs and large firms. Portuguese firms’ perceptions on entry barriers suggest that both structural and strategic barriers are important and that the effectiveness of strategic barriers depends on the structural characteristics of the market.

Alexandra Couto, Natália Barbosa

https://www.sciencedirect.com/journal/european-research-on-management-and-business-economics/vol/26/issue/2

Elsevier Espana, S.L.U

5 May 2020

Sri Wahyuni

ISSN: 2444-8834

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Jurnal Internasional European Research on Management and Business Economics 2020