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Towards a comprehensive model of entry timing in the ICT industry: Direct and indirect effects

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  • García-Villaverde, Pedro M.
  • Ruiz-Ortega, María J.
  • Parra-Requena, Gloria

Abstract

We 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.

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  • 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.
    • Handle: RePEc:eee:worbus:v:47:y:2012:i:2:p:297-310
    DOI: 10.1016/j.jwb.2011.04.017
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