DETERMINANTS OF FIRMS’ MOTIVATIONS FOR MARKET ENTRY: AN ANALYSIS OF THE TURKISH MANUFACTURING INDUSTRY
Project no. 32104 · Status: Kapanmış (Yayın bekleniyor) · 2024
Summary
<p><span style="color: black;">The manufacturing industry has the capacity to drive production to higher levels both within its own sector and across the broader economy through the value added it generates, its innovation potential, its technological dynamism, and the resulting productivity gains. This characteristic makes it highly desirable for countries to attract new firms into manufacturing as a means of fostering growth. This study aims to identify the fundamental determinants of firm entry into the Turkish manufacturing industry. The empirical models are based on Bain’s (1957) entry barrier framework within the industrial organization literature. In addition, the recent prominence of green-oriented growth and green transformation has introduced a new lens through which entry into the industrial sector must be evaluated. For this reason, green transformation indicators are incorporated into the models, and the impact of this transformation on market entry is analyzed.</span></p><p><span style="color: black;">The analysis is conducted using logistic regression for the period 2009–2023. Given that firms in the manufacturing industry operate at different technological levels, separate models are estimated for high-technology and low-technology sectors. Moreover, since approximately 95% of manufacturing firms are SMEs, the analysis is further differentiated between large-scale firms and SMEs. Considering 22 manufacturing sub-sectors classified according to NACE Rev. 2, the study aims to provide a roadmap for policymakers by identifying the key factors that shape firms’ entry into the market.</span></p>