Empirical Analysis of the Determinants of Entry in the Brazilian Cement Industry
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Data de Publicação: | 2015 |
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Tipo de documento: | Artigo |
Idioma: | por |
Título da fonte: | RAM. Revista de Administração Mackenzie |
Texto Completo: | https://editorarevistas.mackenzie.br/index.php/RAM/article/view/7547 |
Resumo: | The cement industry is a classic example of a concentrated-homogeneous industry, where entry is difficult. Despite that, there was an increase in the number of entrants in the Brazilian cement industry during the last few years. The purpose of the present work is to identify the main factors that impacted regional entry decisions in the Brazilian cement market from 2003 through 2012. Another purpose is to explore possible causes for the incumbents’ decision to accommodate new entry in these regions. Other studies that analyze the cement industry (Salvo, 2010; Miller & Osborne, 2014; Zeiden & Resende, 2010, 2009; La Cour & Møllgaard, 2003), have not been focused on entry. The present work adds to the academic literature about the behavior of Brazilian firms in concentrated market structures by focusing on entry analysis in these markets. The main factors considered are: consumption, consumption growth, transportation cost, number of active firms, number of plants, and regional characteristics, in the period of 2003 through 2012. A logit model is used to estimate the impact of these factors on the likelihood of entry and incumbents’ expansion. An exploratory analysis based on case discussion is also conducted in order to attempt to explain the incumbents’ behavior. The results indicate that besides regional characteristics, a high level of consumption, and a low market concentration – measured by the number of active firms or number of existing plants by region – are the conditions that most significantly favor entry. The incumbents’ expansion decision, on the other hand, is most strongly correlated with the potential for consumption growth, allowing entry to occur in the Brazilian regions with high levels of consumption but low levels of growth. |
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Empirical Analysis of the Determinants of Entry in the Brazilian Cement IndustryAnálisis Empírico de los Factores que Permitió a las Entradas em la Industria Cementera BrasileñaAnálise Empírica dos Fatores que Possibilitaram Entradas na Indústria de Cimento BrasileiraEntry strategies. Incumbent’s strategies. Cement industry. Spatial competition. Concentration.Estrategias de entrada. Estrategias de operadores tradicionales. Industria del cemento. La competencia espacial. Concentración.Estratégias de entrada. Estratégias das incumbentes. Indústria de cimento. Competição espacial. Concentração.The cement industry is a classic example of a concentrated-homogeneous industry, where entry is difficult. Despite that, there was an increase in the number of entrants in the Brazilian cement industry during the last few years. The purpose of the present work is to identify the main factors that impacted regional entry decisions in the Brazilian cement market from 2003 through 2012. Another purpose is to explore possible causes for the incumbents’ decision to accommodate new entry in these regions. Other studies that analyze the cement industry (Salvo, 2010; Miller & Osborne, 2014; Zeiden & Resende, 2010, 2009; La Cour & Møllgaard, 2003), have not been focused on entry. The present work adds to the academic literature about the behavior of Brazilian firms in concentrated market structures by focusing on entry analysis in these markets. The main factors considered are: consumption, consumption growth, transportation cost, number of active firms, number of plants, and regional characteristics, in the period of 2003 through 2012. A logit model is used to estimate the impact of these factors on the likelihood of entry and incumbents’ expansion. An exploratory analysis based on case discussion is also conducted in order to attempt to explain the incumbents’ behavior. The results indicate that besides regional characteristics, a high level of consumption, and a low market concentration – measured by the number of active firms or number of existing plants by region – are the conditions that most significantly favor entry. The incumbents’ expansion decision, on the other hand, is most strongly correlated with the potential for consumption growth, allowing entry to occur in the Brazilian regions with high levels of consumption but low levels of growth.La industria del cemento es un ejemplo clásico de una homogénea industria concentrada, donde la entrada es difícil. Sin embargo, ocorrió un aumento en el número de entrantes en la industria cementera brasileña en los últimos años. El objetivo de este estudio es identificar los factores claves que impactaron las decisiones de entradas regionales en el mercado de cemento de Brasil entre 2003 y 2012. Otro objetivo es explorar las posibles causas de las empresas establecidas en estas regiones han decidido dar cabida a estas nuevas entradas. Otros estudios que analizaron la industria del cemento (Salvo, 2010; Miller & Osborne, 2014; Zeiden & Resende, 2010, 2009; La Cour & Møllgaard, 2003), no se centraron en las entradas. Este estudio se suma a la literatura académica sobre el comportamiento de las empresas brasileñas en las estructuras de mercado concentradas para centrarse en el análisis de los registros de eventos en estos mercados. Los principales factores considerados son: el consumo, el crecimiento en el consumo, el costo de transporte, el número de empresas operadoras, el número de fábricas, y las características regionales en el período entre 2003 y 2012. Un modelo logit se utiliza para estimar el impacto de estos factores en las probabilidades de ingreso de entrantes y de expansión de los operadores tradicionales. Un análisis exploratorio basado en la discusión de los casos también se realiza en un intento de explicar el comportamiento de los operadores tradicionales. Los resultados indican que, además de características regionales, un alto nivel de consumo actual, y una menor concentración de mercado - se mide por el número de empresas activas o número de fábricas por región - son las condiciones que favorecen más significativamente los ingresos de entrantes. Las decisiones de expansión de los operadores tradicionales, por otro lado, están más fuertemente correlacionadas con el potencial de crecimiento del consumo, lo que permite que lo ingreso de entrantes se produzca en las regiones brasileñas con alto consumo actual, pero bajo potencial de crecimiento.A indústria de cimento é um exemplo clássico de uma indústria concentrada-homogênea, onde a entrada é difícil. Ainda assim, ocorreu um aumento no número de entrantes na indústria de cimento brasileira nos últimos anos. O objetivo do presente estudo é identificar os principais fatores que impactaram as decisões de entrada regionais no mercado de cimento brasileiro no período de 2003 à 2012. Outro objetivo é explorar possíveis causas para as firmas incumbentes nestas regiões terem decidido por acomodar estas novas entradas. Outros estudos que analisaram à indústria de cimento (Salvo, 2010; Miller & Osborne, 2014; Zeiden & Resende, 2010,2009; La Cour & Møllgaard, 2003), não focaram nas entradas. O presente estudo adiciona à literatura acadêmica sobre comportamento de firmas brasileiras em estruturas de mercado concentradas ao focar na análise da ocorrência de entradas nestes mercados. Os principais fatores considerados são: consumo, crescimento do consumo, custo de transporte, número de empresas atuantes, número de fábricas, e características regionais, no período entre 2003 e 2012. Um modelo logit é utilizado para estimar o impacto destes fatores nas probabilidades de entrada e de expansão das incumbentes. Uma análise exploratória baseada em discussão de casos também é realizada na tentativa de explicar o comportamento das incumbentes. Os resultados indicam que além das características regionais, um alto nível de consumo corrente, e uma menor concentração de mercado - medida pelo número de firmas atuantes ou número de fábricas existentes por região - são as condições que mais significativamente favorecem a ocorrência de entradas. As decisões de expansão das incumbentes, por outro lado, são mais fortemente correlacionadas com o potencial de crescimento de consumo, permitindo que a entrada ocorra em regiões brasileiras com alto nível de consumo corrente mas baixo potencial de crescimento.Editora Mackenzie2015-12-16info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionAvaliado por ParesPesquisa Empírica Descritiva;Econometria.application/pdfapplication/vnd.openxmlformats-officedocument.spreadsheetml.sheetapplication/vnd.openxmlformats-officedocument.spreadsheetml.sheetapplication/vnd.openxmlformats-officedocument.spreadsheetml.sheethttps://editorarevistas.mackenzie.br/index.php/RAM/article/view/7547Revista de Administração Mackenzie; Vol. 16 No. 6 (2015): Fórum Especial Temático sobre a Construção do Percurso na Vida Laboral e suas Múltiplas DimensõesRevista de Administração Mackenzie; Vol. 16 Núm. 6 (2015): Fórum Especial Temático sobre a Construção do Percurso na Vida Laboral e suas Múltiplas DimensõesRevista de Administração Mackenzie (Mackenzie Management Review); v. 16 n. 6 (2015): Fórum Especial Temático sobre a Construção do Percurso na Vida Laboral e suas Múltiplas Dimensões1678-69711518-6776reponame:RAM. Revista de Administração Mackenzieinstname:Universidade Presbiteriana Mackenzie (MACKENZIE)instacron:MACKENZIEporhttps://editorarevistas.mackenzie.br/index.php/RAM/article/view/7547/5521https://editorarevistas.mackenzie.br/index.php/RAM/article/view/7547/9426https://editorarevistas.mackenzie.br/index.php/RAM/article/view/7547/9506https://editorarevistas.mackenzie.br/index.php/RAM/article/view/7547/9542Copyright (c) 2015 Revista de Administração Mackenzieinfo:eu-repo/semantics/openAccessMedeiros, Priscilla YungLevy, David Carletti2015-12-16T20:38:37Zoai:ojs.editorarevistas.mackenzie.br:article/7547Revistahttps://editorarevistas.mackenzie.br/index.php/RAM/PUBhttps://editorarevistas.mackenzie.br/index.php/RAM/oairevista.adm@mackenzie.br1678-69711518-6776opendoar:2024-04-19T17:01:01.701629RAM. Revista de Administração Mackenzie - Universidade Presbiteriana Mackenzie (MACKENZIE)false |
dc.title.none.fl_str_mv |
Empirical Analysis of the Determinants of Entry in the Brazilian Cement Industry Análisis Empírico de los Factores que Permitió a las Entradas em la Industria Cementera Brasileña Análise Empírica dos Fatores que Possibilitaram Entradas na Indústria de Cimento Brasileira |
title |
Empirical Analysis of the Determinants of Entry in the Brazilian Cement Industry |
spellingShingle |
Empirical Analysis of the Determinants of Entry in the Brazilian Cement Industry Medeiros, Priscilla Yung Entry strategies. Incumbent’s strategies. Cement industry. Spatial competition. Concentration. Estrategias de entrada. Estrategias de operadores tradicionales. Industria del cemento. La competencia espacial. Concentración. Estratégias de entrada. Estratégias das incumbentes. Indústria de cimento. Competição espacial. Concentração. |
title_short |
Empirical Analysis of the Determinants of Entry in the Brazilian Cement Industry |
title_full |
Empirical Analysis of the Determinants of Entry in the Brazilian Cement Industry |
title_fullStr |
Empirical Analysis of the Determinants of Entry in the Brazilian Cement Industry |
title_full_unstemmed |
Empirical Analysis of the Determinants of Entry in the Brazilian Cement Industry |
title_sort |
Empirical Analysis of the Determinants of Entry in the Brazilian Cement Industry |
author |
Medeiros, Priscilla Yung |
author_facet |
Medeiros, Priscilla Yung Levy, David Carletti |
author_role |
author |
author2 |
Levy, David Carletti |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Medeiros, Priscilla Yung Levy, David Carletti |
dc.subject.por.fl_str_mv |
Entry strategies. Incumbent’s strategies. Cement industry. Spatial competition. Concentration. Estrategias de entrada. Estrategias de operadores tradicionales. Industria del cemento. La competencia espacial. Concentración. Estratégias de entrada. Estratégias das incumbentes. Indústria de cimento. Competição espacial. Concentração. |
topic |
Entry strategies. Incumbent’s strategies. Cement industry. Spatial competition. Concentration. Estrategias de entrada. Estrategias de operadores tradicionales. Industria del cemento. La competencia espacial. Concentración. Estratégias de entrada. Estratégias das incumbentes. Indústria de cimento. Competição espacial. Concentração. |
description |
The cement industry is a classic example of a concentrated-homogeneous industry, where entry is difficult. Despite that, there was an increase in the number of entrants in the Brazilian cement industry during the last few years. The purpose of the present work is to identify the main factors that impacted regional entry decisions in the Brazilian cement market from 2003 through 2012. Another purpose is to explore possible causes for the incumbents’ decision to accommodate new entry in these regions. Other studies that analyze the cement industry (Salvo, 2010; Miller & Osborne, 2014; Zeiden & Resende, 2010, 2009; La Cour & Møllgaard, 2003), have not been focused on entry. The present work adds to the academic literature about the behavior of Brazilian firms in concentrated market structures by focusing on entry analysis in these markets. The main factors considered are: consumption, consumption growth, transportation cost, number of active firms, number of plants, and regional characteristics, in the period of 2003 through 2012. A logit model is used to estimate the impact of these factors on the likelihood of entry and incumbents’ expansion. An exploratory analysis based on case discussion is also conducted in order to attempt to explain the incumbents’ behavior. The results indicate that besides regional characteristics, a high level of consumption, and a low market concentration – measured by the number of active firms or number of existing plants by region – are the conditions that most significantly favor entry. The incumbents’ expansion decision, on the other hand, is most strongly correlated with the potential for consumption growth, allowing entry to occur in the Brazilian regions with high levels of consumption but low levels of growth. |
publishDate |
2015 |
dc.date.none.fl_str_mv |
2015-12-16 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Avaliado por Pares Pesquisa Empírica Descritiva;Econometria. |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://editorarevistas.mackenzie.br/index.php/RAM/article/view/7547 |
url |
https://editorarevistas.mackenzie.br/index.php/RAM/article/view/7547 |
dc.language.iso.fl_str_mv |
por |
language |
por |
dc.relation.none.fl_str_mv |
https://editorarevistas.mackenzie.br/index.php/RAM/article/view/7547/5521 https://editorarevistas.mackenzie.br/index.php/RAM/article/view/7547/9426 https://editorarevistas.mackenzie.br/index.php/RAM/article/view/7547/9506 https://editorarevistas.mackenzie.br/index.php/RAM/article/view/7547/9542 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2015 Revista de Administração Mackenzie info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2015 Revista de Administração Mackenzie |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf application/vnd.openxmlformats-officedocument.spreadsheetml.sheet application/vnd.openxmlformats-officedocument.spreadsheetml.sheet application/vnd.openxmlformats-officedocument.spreadsheetml.sheet |
dc.publisher.none.fl_str_mv |
Editora Mackenzie |
publisher.none.fl_str_mv |
Editora Mackenzie |
dc.source.none.fl_str_mv |
Revista de Administração Mackenzie; Vol. 16 No. 6 (2015): Fórum Especial Temático sobre a Construção do Percurso na Vida Laboral e suas Múltiplas Dimensões Revista de Administração Mackenzie; Vol. 16 Núm. 6 (2015): Fórum Especial Temático sobre a Construção do Percurso na Vida Laboral e suas Múltiplas Dimensões Revista de Administração Mackenzie (Mackenzie Management Review); v. 16 n. 6 (2015): Fórum Especial Temático sobre a Construção do Percurso na Vida Laboral e suas Múltiplas Dimensões 1678-6971 1518-6776 reponame:RAM. Revista de Administração Mackenzie instname:Universidade Presbiteriana Mackenzie (MACKENZIE) instacron:MACKENZIE |
instname_str |
Universidade Presbiteriana Mackenzie (MACKENZIE) |
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MACKENZIE |
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MACKENZIE |
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RAM. Revista de Administração Mackenzie |
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RAM. Revista de Administração Mackenzie |
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RAM. Revista de Administração Mackenzie - Universidade Presbiteriana Mackenzie (MACKENZIE) |
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revista.adm@mackenzie.br |
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