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Leveraging the advantage of early entry: proprietary technologies versus cost leadership

Abstract : This research develops the relationships between the “early mover advantage” and a firm's market share. It tests hypotheses relating a firm's strategic choices and order of entry to market share on a cross-sectional data set of 1042 French manufacturing companies. The results support the persistence of an advantage for early movers. Furthermore, the development of proprietary technologies, considered as a capability to protect in-house knowledge from competition, has a leverage effect on the advantage of early moving. Finally, if cost leadership is a relevant strategy to gain market share, it is mostly beneficial for late entrants.
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Submitted on : Friday, February 19, 2010 - 11:25:14 AM
Last modification on : Thursday, January 11, 2018 - 6:19:31 AM

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Rodolphe Durand, R. Coeurderoy. Leveraging the advantage of early entry: proprietary technologies versus cost leadership. Journal of Business Research, Elsevier, 2004, Vol. 57, n° 6, pp. 583-591. ⟨10.1016/S0148-2963(02)00423-X⟩. ⟨hal-00458095⟩

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