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28-04-2021 | Research

From subcontractors to company owners: modeling firm-type choices in industrial clusters

Authors: Babur Wasim Arif, Sana Ullah

Published in: Journal of Global Entrepreneurship Research

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Abstract

The importance of industrial clusters in industrial development in developing countries is increasingly recognized in the literature. In industrial clusters, division and specialization of labor established under subcontracting arrangements permit less exceptional and ordinary entrepreneurs to enter the industry without much initial capital investment and technical skills and grow in small risk-able steps. Although existing literature is substantiated by empirical evidence, a theoretical framework explaining entrepreneurs’ choices to enter the industry as a subcontractor or as an independent firm is missing. The present study proposes a mathematical model that explains how entrepreneurs choose the firm type at the time of entry and as they grow over time.

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Metadata
Title
From subcontractors to company owners: modeling firm-type choices in industrial clusters
Authors
Babur Wasim Arif
Sana Ullah
Publication date
28-04-2021
Publisher
Springer Berlin Heidelberg
Published in
Journal of Global Entrepreneurship Research
Print ISSN: 2228-7566
Electronic ISSN: 2251-7316
DOI
https://doi.org/10.1007/s40497-021-00262-5

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