Title
Cultural niche dimensionality and small firm subsistence
Author
Faculty/Department
Faculty of Applied Economics
Publication type
report
Publication
Antwerp :UA, [*]
Subject
Economics
Source (series)
Research paper / UA, Faculty of Applied Economics ; 2011:005
Volume/pages
9 p.,
Carrier
E
Target language
English (eng)
Affiliation
University of Antwerp
Abstract
In populations of human organizations (e.g. rms) that operate in cultural niches (markets), size dierences are usually large. As large organizations can in principle out-compete small ones, the actual pres- ence of many small organizations asks for an explanation. In ours, we focus on the dimensionality of cultural niches, that can change as a consequence of product innovations, preference elaboration, or insti- tutions. We show that increasing market dimensionality substantially enlarges the market periphery relative to the market center, which cre- ates new potential niches for small rms. Decreasing dimensionality, in contrast, preserves market positions for a portion of the incumbent small rms rather than forcing all of them to exit. We thereby provide a parsimonious explanation for small rm existence when dimension- ality changes, even in concentrated markets and net of other factors.
Full text (open access)
https://repository.uantwerpen.be/docman/irua/a5b0df/4faa2a4a.pdf
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