Towards a comprehensive model of entry timing in the ICT industry: Direct and indirect effects
AbstractWe propose and contrast a model that integrates the factors influencing entry timing and the way entry timing influences firm performance, using a sample of firms that carry out international activities from the Information and Communications Technology Industry (ICT) in Spain. We found that capabilities are the main factor influencing firm performance. We also demonstrate that entry timing plays a significant mediator role in this relationship. Furthermore, we found that the utility strategy, which combines efforts in costs and differentiation, is a basic factor that explains and reinforces sustainable competitive advantages for those firms that enter early into the market. Managers need to analyse the implications of entry timing at length. In this sense, managers should evaluate if they have a suitable configuration of capabilities for entering the market successfully. They should also try to consolidate first mover advantages (FMAs), developing hybrid strategies that combine low cost and differentiation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of World Business.
Volume (Year): 47 (2012)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John R. Hauser & Steven M. Shugan, 1983.
"Defensive Marketing Strategies,"
INFORMS, vol. 2(4), pages 319-360.
- William Boulding & Markus Christen, 2008. "Disentangling Pioneering Cost Advantages and Disadvantages," Marketing Science, INFORMS, vol. 27(4), pages 699-716, 07-08.
- Roberta Capello & Alessandra Faggian, 2005. "Collective Learning and Relational Capital in Local Innovation Processes," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 75-87.
- Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
- William Boulding & Markus Christen, 2003. "Sustainable Pioneering Advantage? Profit Implications of Market Entry Order," Marketing Science, INFORMS, vol. 22(3), pages 371-392.
- Kuivalainen, Olli & Sundqvist, Sanna & Servais, Per, 2007. "Firms' degree of born-globalness, international entrepreneurial orientation and export performance," Journal of World Business, Elsevier, vol. 42(3), pages 253-267, September.
- Schmalensee, Richard., 1980.
"Product differentiation advantages of pioneering brands,"
1140-80., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Schmalensee, Richard, 1982. "Product Differentiation Advantages of Pioneering Brands," American Economic Review, American Economic Association, vol. 72(3), pages 349-65, June.
- Hitt, Michael A. & He, Xiaoming, 2008. "Firm strategies in a changing global competitive landscape," Business Horizons, Elsevier, vol. 51(5), pages 363-369.
- Michael J. Dowling & Jeffrey E. McGee, 1994. "Business and Technology Strategies and New Venture Performance: A Study of the Telecommunications Equipment Industry," Management Science, INFORMS, vol. 40(12), pages 1663-1677, December.
- Proff, Heike, 2000. "Hybrid strategies as a strategic challenge -- the case of the German automotive industry," Omega, Elsevier, vol. 28(5), pages 541-553, October.
- Canabal, Anne & White III, George O., 2008. "Entry mode research: Past and future," International Business Review, Elsevier, vol. 17(3), pages 267-284, June.
- Yigang Pan & Shaomin Li & David K Tse, 1999. "The Impact of Order and Mode of Market Entry on Profitability and Market Share," Journal of International Business Studies, Palgrave Macmillan, vol. 30(1), pages 81-103, March.
- 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.
- Williams, Mary L. & Tsai, Ming-Hone & Day, Diana, 1991. "Intangible assets, entry strategies, and venture success in industrial markets," Journal of Business Venturing, Elsevier, vol. 6(5), pages 315-333, September.
- 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.
- Tseng, Chiung-Hui & Lee, Ruby P., 2010. "Host environmental uncertainty and equity-based entry mode dilemma: The role of market linking capability," International Business Review, Elsevier, vol. 19(4), pages 407-418, August.
- 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.
- Pieter A. VanderWerf & John F. Mahon, 1997. "Meta-Analysis of the Impact of Research Methods on Findings of First-Mover Advantage," Management Science, INFORMS, vol. 43(11), pages 1510-1519, November.
- Miller, Alex & Gartner, William B. & Wilson, Robert, 1989. "Entry order, market share, and competitive advantage: A study of their relationships in new corporate ventures," Journal of Business Venturing, Elsevier, vol. 4(3), pages 197-209, May.
- 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.
- 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.
- Cui, Lin & Jiang, Fuming, 2009. "FDI entry mode choice of Chinese firms: A strategic behavior perspective," Journal of World Business, Elsevier, vol. 44(4), pages 434-444, October.
- Ramamurti, Ravi, 2000. "Risks and rewards in the globalization of telecommunications in emerging economies," Journal of World Business, Elsevier, vol. 35(2), pages 149-170, July.
- Javalgi, Rajshekhar (Raj) G. & Deligonul, Seyda & Ghosh, Amit K. & Lambert, Douglas M. & Cavusgil, S. Tamer, 2010. "Foreign market entry mode behavior as a gateway to further entries: The NAFTA experience," International Business Review, Elsevier, vol. 19(3), pages 209-222, June.
- Christensen, Clayton, 1997. "Patterns in the evolution of product competition," European Management Journal, Elsevier, vol. 15(2), pages 117-127, April.
- Lee, Seung-Hyun & Beamish, Paul W. & Lee, Ho-Uk & Park, Jong-Hun, 2009. "Strategic choice during economic crisis: Domestic market position, organizational capabilities and export flexibility," Journal of World Business, Elsevier, vol. 44(1), pages 1-15, January.
- Wijbenga, Frits H. & van Witteloostuijn, Arjen, 2007. "Entrepreneurial locus of control and competitive strategies - The moderating effect of environmental dynamism," Journal of Economic Psychology, Elsevier, vol. 28(5), pages 566-589, October.
- Chen, Haiyang & Hu, Michael Y., 2002. "An analysis of determinants of entry mode and its impact on performance," International Business Review, Elsevier, vol. 11(2), pages 193-210, April.
- Finney, R. Zachary & Lueg, Jason E. & Campbell, Noel D., 2008. "Market pioneers, late movers, and the resource-based view (RBV): A conceptual model," Journal of Business Research, Elsevier, vol. 61(9), pages 925-932, September.
- Wright, Peter & Kroll, Mark & Pray, Bevalee & Lado, Augustine, 1995. "Strategic orientations, competitive advantage, and business performance," Journal of Business Research, Elsevier, vol. 33(2), pages 143-151, June.
- C. Brooke Dobni, 2010. "The Relationship Between An Innovation Orientation And Competitive Strategy," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 14(02), pages 331-357.
- TENENHAUS, Michel, 2008. "Component-based structural equation modelling," Les Cahiers de Recherche 887, HEC Paris.
- 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.
- 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.
- Bantel, Karen A., 1998. "Technology-based, "adolescent" firm configurations: strategy identification, context, and performance," Journal of Business Venturing, Elsevier, vol. 13(3), pages 205-230, May.
- Levesque, Moren & Shepherd, Dean A., 2004. "Entrepreneurs' choice of entry strategy in emerging and developed markets," Journal of Business Venturing, Elsevier, vol. 19(1), pages 29-54, January.
- Louis A. Thomas, 1996. "Brand Capital and Entry Order," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 5(1), pages 107-129, 03.
- Glen L. Urban & Theresa Carter & Steven Gaskin & Zofia Mucha, 1986. "Market Share Rewards to Pioneering Brands: An Empirical Analysis and Strategic Implications," Management Science, INFORMS, vol. 32(6), pages 645-659, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.