The authors extend many thanks to the editor and anonymous referees for their excellent comments and suggestions.
Growth of Incumbent Firms and Entrepreneurship in Vietnam
Article first published online: 23 NOV 2012
© 2012 Wiley Periodicals, Inc
Growth and Change
Volume 43, Issue 4, pages 638–666, December 2012
How to Cite
Santarelli, E. and Tran, H. T. (2012), Growth of Incumbent Firms and Entrepreneurship in Vietnam. Growth and Change, 43: 638–666. doi: 10.1111/j.1468-2257.2012.00601.x
- Issue published online: 23 NOV 2012
- Article first published online: 23 NOV 2012
- Manuscript Accepted: MAR 2012
- Manuscript Revised: JAN 2012
- Manuscript Received: JUL 2011
This paper analyzes the relationship between the performance of incumbent firms and the net entry of new firms by combining various theoretical views of entrepreneurship. Different regression models to treat dynamics and endogeneity issues are applied to test the research hypothesis with regional micro-data for 61 Vietnamese provinces from 2000 to 2008. The main finding is that net entry is associated with the performance of incumbent firms and the overall performance of the economy. Incumbents' growth and gross domestic product growth induce changes in the existing production system and stimulate the creation of an economic environment more favourable to new firm formation. Consistent with the hypotheses put forward within the “knowledge spillover,” the “error-correction,” and other approaches, incumbents may generate new entrepreneurial opportunities not only for themselves but also for the whole society.