Determinants of Entry and its Measurement – A Critical Review

Bain introduced the concept of the condition of entry and this is the first systematic study on barriers to entry. It has been proved from various empirical findings that conditions of entry play a crucial role in investment decision. So, there is a need to study factors affecting entry and how these factors are measured. This paper analyses determinants of entry. Various empirical studies on determinants of entry have been reviewed and variables have been derived from factors inducing entry and deterring entry. These factors related to determinants of entry and its impact on entry has been analyzed. Further entry barriers have been broadly classified as Structure-Conduct-Performance (S-C-P) framework. This study also examines issues related to measurement of entry barriers and its impact on entry decision. Role of vertical integration, Distribution and Marketing Intensity and export orientation is also explored in measuring barrier to entry. The present study has been envisaged to critically analyze the various barriers to entry that have been identified under various studies.