JEFMS Journal

ABSTRACT:

Entry barriers are one of the dangerous powers that helps with incumbent firms in terms of competitive advantage over new participants and helps to promote the oligopoly market structure. The objective of this study is to consider barriers to entry of new entrants into Kandahar industrial park and to recognize some remedial business strategies where it’s application make the entry easy into Kandahar industrial park.

To conduct this study a mixed method research design is used. The qualitative technique is completed over semiorganized interviews where prepared questions are used (Saunders and Lewis, 2012). To obtain quantitative data a 5-point Likert scale questionnaire is utilized, which was sent out to senior and middle workers, managers and owners.

Results shows that there are entry barriers into Kandahar industrial park which influence new entrants negatively. And the importance level of the entry barriers to new entrants is significantly different. Yet, there are economics strategies that helps entrepreneurs to enter Kandahar industrial park.

KEYWORDS:

Entry Barriers, SMEs, Entrepreneurship, Kandahar industrial park.

REFERENCES:

1) Audretch, D. B. (2006). Entrepreneurship, innovation and economic growth. Cheltenham:

2) Edward Elgar.

3) Audretch, D. B., &Thurik, R. (2001). What’s new about the new economy? Sources of growth in the managed and entrepreneurial economies. Industrial and Corporate Change, 10, 267–315.

4) Shepherd, W. G. (1997). The economics of industrial organization. Upper Saddle River, NJ: Prentice-Hall International.

5) Karakaya, F., & Stahl, M. J. (1989). Barriers to entry and market entry decisions in consumer and industrial goods markets. Journal of Marketing, 53, 80–91.

6) Blees, J., Kemp, R. G. M., Maas, J., &Mosselman, M. (2003). Barriers to entry.

7) Differences in barriers to entry for SME’s and large enterprises. EIM Research Report H200301, The Netherlands.

8) Karakaya, F. (2002). Barriers to entry in industrial markets. Journal of Business and Industrial Marketing, 17(5), 379–388.

9) Scherer, F. M. (1988). Review of the economics of market dominance. International Journal of Industrial Organization, 6, 517–519.

10) Geroski, P. A. (1995). What do we know about entry? International Journal of Industrial Organization, 13, 421–440.

11) Geroski, P. A., Gilbert, R. J., &Jacquemin, A. (1990). Barriers to entry and strategic competition, fundamentals of pure and applied economics 41. Chur: Harwood Academic.

12) Bunch, D. S., & Smiley, R. (1992). Who deters entry? Evidence on the use of strategic entry deterrents. Review of Economics and Statistics, 74(3), 509–521.

13) Aidis, R. (2005). Institutional barriers to small- and mediumsized enterprise operations in transition countries. Small Business Economics, 25, 305–318.

14) Davidsson, P. (1991). Continued entrepreneurship: Ability, need, and opportunity as determinants of small firm growth. Journal of Business Venturing, 6, 405–429.

15) Bain, J. S. (1956). Barriers to new competition. Cambridge, MA: Harvard University Press.

16) Von Weizsacker, C. C. (1980). A welfare analysis of barriers to entry. Bell Journal of Economics, 11(2), 399–420.

17) Stigler, G. (1968). The organization of industry. Chicago, IL: University of Chicago Press.

18) McAfee, R. P., Mialon, H. M., & Williams, M. A. (2004). What is a barrier to entry?

19) American Economic Review, 94(2), 461–465.

20) Robinson, K. C., & McDougall, P. P. (2001). Entry barriers and new venture performance: A comparison of universal and contingency approaches. Strategic Management Journal,22, 659–685.

21) Singh, S., Utton, M., & Waterson, M. (1998). Strategic behaviour of incumbent firms in the UK. International Journal of Industrial Organization, 16, 229–251.

22) Porter, M. E. (1980). Competitive strategy. NY: Free.

23) Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. NY: Free.

24) Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, March, 99–120.

25) Besanko, D., Dranove, D., Shanley, M., & Schaefer, S. (2007). Economics of strategy.

26) UK: Wiley.

27) Yip, G. S. (1982). Barriers to entry: A corporate perspective. Lexicon, MA: Lexicon Books.

28) Lutz, C., Kemp, R., & Dijkstra, S. G. (2007). SME's perceptions regarding strategic and structural entry barriers. s.n.

29) Saunders, M., & Lewis, P. (2012). Doing research in business & management. Edinburgh Gate: Pearson.

30) Johansson, U., &Elg, U. (2002). Relationships as entry barriers: a network perspective. Scandinavian Journal of Management, 18(3), 393–419. doi:10.1016/S09565221(01)00014-8.

31) Karakaya, F., &Parayitam, S. (2013). Barriers to entry and firm performance: aproposed model and curvilinear relationships. Journal of Strategic Marketing,21(1), 25–47. doi:10.1080/0965254x.2012.734689.