Does entry size matter? The impact of the life cycle and technology on firm survival

A wave of empirical studies has recently emerged showing that smaller-scale entry is confronted with a lower likelihood of survival than their larger counterparts. The purpose of this paper is to examine whether the relations hip between size of a firm when entering an industry and the likelihood of survival holds under different technological conditions and across the diff erent stages of the industry life cycle. The empirical evidence suggests th at the relationship between firm size and the likelihood of survival is sha ped by technology and the stage of the industry life cycle. While the likel ihood of survival confronting small entrants is generally less than that co nfronting their larger counterparts, the relationship does not hold for mat ure stages of the product life cycle, or in technologically intensive produ cts. In mature industries that are still technologically intensive, entry m ay be less about radical innovation and possibly more about filling strateg ic niches. thus negating the impact of entry size on the likelihood of surv ival.