Posts categorized under Competition

Entry of IKEA and small and medium firms' response

January 3, 2023
Using novel and primary data on local SMEs belonging to the Portuguese furniture production cluster this study addresses the changing nature of competition and local firm’s strategic response to IKEA’s entry and its impact on their performance. The study focuses on clusters, firm strategy and multinational corporations (MNCs) by assessing (i) how local firms, predominantly SMEs, respond to the MNC entry, (ii) which factors explain their strategic response, and (iii) the impact of strategic responses on their performance.

Evolution of price-cost margins during the troika intervention

November 12, 2022
The paper asks if the troika intervention of 2011 - 2014 helped promote a more competitive environment and improve the allocation of scarce resources to benefit economic growth and welfare. The question is generally pertinent, especially during this period where resources were scarce in the public, corporate, and financial sectors. The paper uses data for the period 2010-2016 from Informação Empresarial Simplicaficada, a database containing the annual accounts of Portuguese manufacturing and services firms.