Order of market entry, market and technological evolution and firm competitive performance

Jaime Gómez Villascuerna ^[1] ; Gianvito Lanzolla ^[2] ; Juan Pablo Maicas López ^[1]
1. [1] Universidad de Zaragoza
  
  Universidad de Zaragoza
  
  Zaragoza, España
2. [2] Cass Business School
Localización: Notas técnicas: [continuación de Documentos de Trabajo FUNCAS], ISSN-e 1988-8767, Nº. 473, 2009
Idioma: inglés
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Resumen
- In this paper, we seek to shed more light on the relationships between order of market entry, industry evolution, and firms’ competitive performance. We identify two industry dynamics – i.e. pace of market change and technological discontinuity – and we elaborate on their impact on the competitive performance of first movers, second movers and third movers. We hypothesize that pace of market change and technological discontinuity negatively affects first movers’ performance whereas their impact on followers’ performance is positive. We test our hypotheses in the context of the European mobile communications industry and we find substantial support for our predictions. Important strategic and policy implications are derived and discussed.