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Social identity, market memory, and first-mover advantage

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  • William P. Barnett
  • Mi Feng
  • Xaioqu Luo

Abstract

Considerable attention goes to whether there is a "first-mover advantage" among organizations. Technical mechanisms have been considered for this advantage, such as learning and occupancy of preferred market segments. We argue that first movers may also benefit from a social identity advantage because being identified as "the original" in a market implies authenticity. When first-mover advantage is based on such an identity, market memory is important. Initially, audiences distinguish the originality of the first mover, but as time passes, such differences are less recognizable. We find evidence of this pattern----and that organizations are constrained from expanding beyond where their identity is established. The results suggest the usefulness of a sociological approach to understanding the first-mover strategy. Copyright 2013 The Author 2012. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

Suggested Citation

  • William P. Barnett & Mi Feng & Xaioqu Luo, 2013. "Social identity, market memory, and first-mover advantage," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(3), pages 585-615, June.
  • Handle: RePEc:oup:indcch:v:22:y:2013:i:3:p:585-615
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    File URL: http://hdl.handle.net/10.1093/icc/dts030
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    Cited by:

    1. Lingli Luo & Xufei Ma & Zeyu Wang, 2022. "The moderate-reputation trap: Evidence from a Chinese cross-border business-to-business e-commerce portal," Asia Pacific Journal of Management, Springer, vol. 39(2), pages 395-432, June.
    2. Deng, Ziliang & Wang, Zeyu, 2016. "Early-mover advantages at cross-border business-to-business e-commerce portals," Journal of Business Research, Elsevier, vol. 69(12), pages 6002-6011.
    3. Gao, Yang & Ge, Baoshan & Lang, Xiangxiang & Xu, Xiaobo, 2018. "Impacts of proactive orientation and entrepreneurial strategy on entrepreneurial performance: An empirical research," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 178-187.
    4. Bhattarai, Charan Raj & Kwong, Caleb C.Y. & Tasavori, Misagh, 2019. "Market orientation, market disruptiveness capability and social enterprise performance: An empirical study from the United Kingdom," Journal of Business Research, Elsevier, vol. 96(C), pages 47-60.

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