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

Author

Listed:
  • Rodolphe Durand

    (EM - EMLyon Business School)

  • Régis Coeurderoy

Abstract

This research develops the relationship 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 to late entrants.

Suggested Citation

  • Rodolphe Durand & Régis Coeurderoy, 2004. "Leveraging the advantage of early entry : Proprietary technologies versus cost leadership," Post-Print hal-02311633, HAL.
  • Handle: RePEc:hal:journl:hal-02311633
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    Citations

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    Cited by:

    1. 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.
    2. Suh, Yongyoon & Kim, Moon-Soo, 2014. "Internationally leading SMEs vs. internationalized SMEs: Evidence of success factors from South Korea," International Business Review, Elsevier, vol. 23(1), pages 115-129.
    3. Ang, James S.K. & Shimada, Tomoaki & Quek, Ser-Aik & Lim, Eugene, 2015. "Manufacturing strategy and competitive performance – An ACE analysis," International Journal of Production Economics, Elsevier, vol. 169(C), pages 240-252.
    4. 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.
    5. 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.
    6. Whalley, Jason & Curwen, Peter, 2012. "Incumbency and market share within European mobile telecommunication networks," Telecommunications Policy, Elsevier, vol. 36(3), pages 222-236.
    7. Bills, Kenneth L. & Cobabe, Matthew & Pittman, Jeffrey & Stein, Sarah E., 2020. "To share or not to share: The importance of peer firm similarity to auditor choice," Accounting, Organizations and Society, Elsevier, vol. 83(C).
    8. Flor, Christian Riis & Moritzen, Mark Raun, 2020. "Entering a new market: Market profitability and first-mover advantages," Journal of Corporate Finance, Elsevier, vol. 62(C).
    9. Armin Anzenbacher & Marcus Wagner, 2020. "The role of exploration and exploitation for innovation success: effects of business models on organizational ambidexterity in the semiconductor industry," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 571-594, June.
    10. 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.
    11. 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.
    12. 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.

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