IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v61y2008i4p332-345.html
   My bibliography  Save this article

Capabilities and competitive tactics influences on performance: Implications of the moment of entry

Author

Listed:
  • Ruiz-Ortega, Mari­a José
  • Garci­a-Villaverde, Pedro Manuel

Abstract

This article examines the implications that the moment of market entry has for the effect of capabilities and competitive tactics on firm performance, using a sample of 253 companies from the information and communications technology industry. The results show that technical capabilities and low cost orientation are learning factors in the firms' performance, regardless of the moment of entry into the market. The study shows how the two perspectives of competitive strategy and resource-based view complement each other to incorporate different competitive factors in a coherent model for the study of entry timing. The study takes the sustainability model of competitive advantage further, by demonstrating that certain capabilities and competitive tactics can allow pioneers and early followers to achieve and maintain superior performance in a dynamic, hostile and with high level of imitation industry. This study also shows that the availability of a combination of marketing capabilities and low cost orientation will allow late followers' firms to take advantage of early entrants' mistakes.

Suggested Citation

  • Ruiz-Ortega, Mari­a José & Garci­a-Villaverde, Pedro Manuel, 2008. "Capabilities and competitive tactics influences on performance: Implications of the moment of entry," Journal of Business Research, Elsevier, vol. 61(4), pages 332-345, April.
    • Handle: RePEc:eee:jbrese:v:61:y:2008:i:4:p:332-345
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148-2963(07)00247-0
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zahra, Shaker A., 1996. "Technology strategy and new venture performance: A study of corporate-sponsored and independent biotechnology ventures," Journal of Business Venturing, Elsevier, vol. 11(4), pages 289-321, July.
    2. Karakaya, Fahri & Kobu, Bulent, 1994. "New product development process: An investigation of success and failure in high-technology and non-high-technology firms," Journal of Business Venturing, Elsevier, vol. 9(1), pages 49-66, January.
    3. Coeurderoy, Regis & Durand, Rodolphe, 2004. "Leveraging the advantage of early entry: proprietary technologies versus cost leadership," Journal of Business Research, Elsevier, vol. 57(6), pages 583-590, June.
    4. Mary Lambkin, 1988. "Order of entry and performance in new markets," Strategic Management Journal, Wiley Blackwell, vol. 9(S1), pages 127-140, June.
    5. N. Venkatraman, 1989. "Strategic Orientation of Business Enterprises: The Construct, Dimensionality, and Measurement," Management Science, INFORMS, vol. 35(8), pages 942-962, August.
    6. Rodolphe Durand & Régis Coeurderoy, 2001. "Age, order of entry, strategic orientation, and organizational performance," Post-Print hal-00481163, HAL.
    7. Schmalensee, Richard, 1982. "Product Differentiation Advantages of Pioneering Brands," American Economic Review, American Economic Association, vol. 72(3), pages 349-365, June.
    8. Durand, Rodolphe & Coeurderoy, Regis, 2001. "Age, order of entry, strategic orientation, and organizational performance," Journal of Business Venturing, Elsevier, vol. 16(5), pages 471-494, September.
    9. Claes Fornell & William T. Robinson & Birger Wernerfelt, 1985. "Consumption Experience and Sales Promotion Expenditure," Management Science, INFORMS, vol. 31(9), pages 1084-1105, September.
    10. Chaney, Paul K & Devinney, Timothy M & Winer, Russell S, 1991. "The Impact of New Product Introductions on the Market Value of Firms," The Journal of Business, University of Chicago Press, vol. 64(4), pages 573-610, October.
    11. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    12. Louis A. Thomas, 1996. "Brand Capital and Entry Order," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 5(1), pages 107-129, March.
    13. De Castro, Julio O. & Chrisman, James J., 1995. "Order of market entry, competitive strategy, and financial performance," Journal of Business Research, Elsevier, vol. 33(2), pages 165-177, June.
    14. Will Mitchell, 1991. "Dual clocks: Entry order influences on incumbent and newcomer market share and survival when specialized assets retain their value," Strategic Management Journal, Wiley Blackwell, vol. 12(2), pages 85-100, February.
    15. Yiannis E. Spanos & George Zaralis & Spyros Lioukas, 2004. "Strategy and industry effects on profitability: evidence from Greece," Strategic Management Journal, Wiley Blackwell, vol. 25(2), pages 139-165, February.
    16. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    17. Jamal Shamsie & Corey Phelps & Jerome Kuperman, 2004. "Better late than never: a study of late entrants in household electrical equipment," Strategic Management Journal, Wiley Blackwell, vol. 25(1), pages 69-84, January.
    18. Covin, Jeffrey G. & Slevin, Dennis P. & Heeley, Michael B., 2000. "Pioneers and followers: Competitive tactics, environment, and firm growth," Journal of Business Venturing, Elsevier, vol. 15(2), pages 175-210, March.
    19. Gary L. Lilien & Eunsang Yoon, 1990. "The Timing of Competitive Market Entry: An Exploratory Study of New Industrial Products," Management Science, INFORMS, vol. 36(5), pages 568-585, May.
    20. Hun Lee & Ken G. Smith & Curtis M. Grimm & August Schomburg, 2000. "Timing, order and durability of new product advantages with imitation," Strategic Management Journal, Wiley Blackwell, vol. 21(1), pages 23-30, January.
    21. Roure, Juan B. & Maidique, Modesto A., 1986. "Linking prefunding factors and high-technology venture success: An exploratory study," Journal of Business Venturing, Elsevier, vol. 1(3), pages 295-306.
    22. Yiannis E. Spanos & Spyros Lioukas, 2001. "An examination into the causal logic of rent generation: contrasting Porter's competitive strategy framework and the resource‐based perspective," Strategic Management Journal, Wiley Blackwell, vol. 22(10), pages 907-934, October.
    23. Rodolphe Durand & Régis Coeurderoy, 2004. "Leveraging the advantage of early entry : Proprietary technologies versus cost leadership," Post-Print hal-02311633, HAL.
    24. Chaim Fershtman & Vijay Mahajan & Eitan Muller, 1990. "Market Share Pioneering Advantage: A Theoretical Approach," Management Science, INFORMS, vol. 36(8), pages 900-918, August.
    25. Rodolphe Durand & R. Coeurderoy, 2004. "Leveraging the advantage of early entry: proprietary technologies versus cost leadership," Post-Print hal-00458095, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sang-Uk Jung & Valeriia Shegai, 2023. "The Impact of Digital Marketing Innovation on Firm Performance: Mediation by Marketing Capability and Moderation by Firm Size," Sustainability, MDPI, vol. 15(7), pages 1-16, March.
    2. Chitsaz, Ehsan & Liang, Dapeng & Khoshsoroor, Somayeh, 2017. "The impact of resource configuration on Iranian technology venture performance," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 186-195.
    3. Lee, Sang-Gun & Koo, Chulmo & Nam, Kichan, 2010. "Cumulative strategic capability and performance of early movers and followers in the cyber market," International Journal of Information Management, Elsevier, vol. 30(3), pages 239-255.
    4. Yan, Ruiliang & Ghose, Sanjoy, 2010. "Forecast information and traditional retailer performance in a dual-channel competitive market," Journal of Business Research, Elsevier, vol. 63(1), pages 77-83, January.
    5. Jakopin, Nejc M. & Klein, Andreas, 2012. "First-mover and incumbency advantages in mobile telecommunications," Journal of Business Research, Elsevier, vol. 65(3), pages 362-370.
    6. Don Jyh-Fu Jeng & Artur Pak, 2016. "The variable effects of dynamic capability by firm size: the interaction of innovation and marketing capabilities in competitive industries," International Entrepreneurship and Management Journal, Springer, vol. 12(1), pages 115-130, March.
    7. Yamakawa, Yasuhiro & Yang, Haibin & Lin, Zhiang (John), 2011. "Exploration versus exploitation in alliance portfolio: Performance implications of organizational, strategic, and environmental fit," Research Policy, Elsevier, vol. 40(2), pages 287-296, March.
    8. Chang, Woojung & Park, Jeong Eun & Chaiy, Seoil, 2010. "How does CRM technology transform into organizational performance? A mediating role of marketing capability," Journal of Business Research, Elsevier, vol. 63(8), pages 849-855, August.
    9. Ramanathan, Ramakrishnan & Ramanathan, Usha & Hsiao, Hsieh-Ling, 2012. "The impact of e-commerce on Taiwanese SMEs: Marketing and operations effects," International Journal of Production Economics, Elsevier, vol. 140(2), pages 934-943.
    10. Julen Castillo‐Apraiz & Jesus Matey, 2020. "Customizing competitive strategy to entry timing: Implications for firm performance in the pharmaceutical industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(6), pages 976-985, September.
    11. Besharat, Ali & Langan, Ryan J. & Nguyen, Carlin A., 2016. "Fashionably late: Strategies for competing against a pioneer advantage," Journal of Business Research, Elsevier, vol. 69(2), pages 718-725.
    12. Ahmmed, Kawsar & Baten, Md Azizul & Hossain, Md Kamrul & Mohd Noor, Nor Azila, 2017. "Supplier capacity and key account management performance: a stochastic frontier analysis," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Parra-Requena, Gloria, 2012. "Towards a comprehensive model of entry timing in the ICT industry: Direct and indirect effects," Journal of World Business, Elsevier, vol. 47(2), pages 297-310.
    2. Lee, Sang-Gun & Koo, Chulmo & Nam, Kichan, 2010. "Cumulative strategic capability and performance of early movers and followers in the cyber market," International Journal of Information Management, Elsevier, vol. 30(3), pages 239-255.
    3. Ortega, María José Ruiz, 2010. "Competitive strategies and firm performance: Technological capabilities' moderating roles," Journal of Business Research, Elsevier, vol. 63(12), pages 1273-1281, December.
    4. Ruiz-Ortega, María J. & García-Villaverde, Pedro M. & Parra-Requena, Gloria, 2018. "How structural embeddedness leads to pioneering orientation," Technological Forecasting and Social Change, Elsevier, vol. 134(C), pages 186-198.
    5. García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Ignacio Canales, J., 2013. "Entrepreneurial orientation and the threat of imitation: The influence of upstream and downstream capabilities," European Management Journal, Elsevier, vol. 31(3), pages 263-277.
    6. Julen Castillo‐Apraiz & Jesus Matey, 2020. "Customizing competitive strategy to entry timing: Implications for firm performance in the pharmaceutical industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(6), pages 976-985, September.
    7. Wooster, Rossitza B. & Paul, Donna L., 2016. "Leadership positioning among U.S. firms investing in China," International Business Review, Elsevier, vol. 25(1), pages 319-332.
    8. Covin, Jeffrey G. & Slevin, Dennis P. & Heeley, Michael B., 2000. "Pioneers and followers: Competitive tactics, environment, and firm growth," Journal of Business Venturing, Elsevier, vol. 15(2), pages 175-210, March.
    9. Dean A. Shepherd, 1999. "Venture Capitalists' Assessment of New Venture Survival," Management Science, INFORMS, vol. 45(5), pages 621-632, May.
    10. Song, Michael & Zhao, Y. Lisa & Di Benedetto, C. Anthony, 2013. "Do perceived pioneering advantages lead to first-mover decisions?," Journal of Business Research, Elsevier, vol. 66(8), pages 1143-1152.
    11. Morgan, Robert E. & Strong, Carolyn A., 2003. "Business performance and dimensions of strategic orientation," Journal of Business Research, Elsevier, vol. 56(3), pages 163-176, March.
    12. Régis Coeurderoy & Rodolphe Durand, 2001. "La cohérence des choix stratégiques:l'impact des décisions d'entrée et des stratégies génériques sur la performance organisationnelle des firmes," Revue Finance Contrôle Stratégie, revues.org, vol. 4(3), pages 57-88, September.
    13. Moren Lévesque & Maria Minniti & Dean Shepherd, 2009. "Entrepreneurs’ Decisions on Timing of Entry: Learning from Participation and from the Experiences of Others," Entrepreneurship Theory and Practice, , vol. 33(2), pages 547-570, March.
    14. Rodríguez-Pinto, Javier & Carbonell, Pilar & Rodríguez-Escudero, Ana I., 2011. "Speed or quality? How the order of market entry influences the relationship between market orientation and new product performance," International Journal of Research in Marketing, Elsevier, vol. 28(2), pages 145-154.
    15. Li, Ji & Lam, Kevin C. K. & Karakowsky, Leonard & Qian, Gongming, 2003. "Firm resource and first mover advantages: A case of foreign direct investment (FDI) in China," International Business Review, Elsevier, vol. 12(5), pages 625-645, October.
    16. Shepherd, Dean A. & Ettenson, Richard & Crouch, Andrew, 2000. "New venture strategy and profitability: A venture capitalist's assessment," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 449-467.
    17. Torsten Gerpott & Nejc Jakopin, 2008. "Markteintrittstiming von Telekommunikationsdiensteanbietern," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 19(1), pages 7-37, May.
    18. J. P. Eggers & Sarah Kaplan, 2009. "Cognition and Renewal: Comparing CEO and Organizational Effects on Incumbent Adaptation to Technical Change," Organization Science, INFORMS, vol. 20(2), pages 461-477, April.
    19. Huan Zou & Xiaohui Liu & Pervez Ghauri, 2010. "Technology Capability And The Internationalization Strategies Of New Ventures," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 1(1).
    20. Rosenbusch, Nina & Brinckmann, Jan & Bausch, Andreas, 2011. "Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs," Journal of Business Venturing, Elsevier, vol. 26(4), pages 441-457, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:61:y:2008:i:4:p:332-345. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.