Elements determining market entry: An application on Turkish manufacturing industry

In the process of globalization, competition has been an inevitable reality of countries in terms of economy. While free entires and exit to market enables to industrial development, reconstruction of it and better working competition system, it is a fact that there are barriers to enter to the market. Settled companies try to keep their situation by creating some entry barriers and this situation incites the potential companies for getting over these barriers and provides for potential companies to create more innovative and better strategies. To make entry and exit to market, conditioned for industrial development and reconstruction of it, free, there should not been any entry-exit barriers to market. At this study, effects of several variables, effecting entry to market and as well as, entry and effects of exit activities of previous year on current year access has been analyzed. This analysis is a panel data analysis. Between 1996-2001 years, data of 60 Turkish manufacturing industries have been gathered according to panel data estimation method. At the study, dependent variable is entry rate in current year; independent variables are entry rates of previous year, exit rates of previous year, profitability rate of previous year, industrial development rate, advertisement expenditures and R&D expenditures. Results show that variables such as entry, profitability, industrial development rate have an important and significant effect for explaining of current year. Furthermore, it has been seen that advertisement and R&D expenditures are ineffective. This situation means that advertisement and R&D expenditures do not make a significant objection to entry to market in Turkish manufacturing industry, because of proportional impairment in advertisement and R&D expenditures.