IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-00591244.html
   My bibliography  Save this paper

Innovation, New Market and Governance Choices of Entry: The Internet Brokerage Market Case

Author

Listed:
  • Valérie Claude-Gaudillat
  • Bertrand Quélin

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper investigates the case of market entry strategies following the introduction of a disruptive innovation. Recognizing that market entry strategies have been envisioned in the literature as a discrete phenomenon, we develop an empirical framework that portrays these strategies as a capability building process. Three organizational modes are integrated into our model: acquisition, alliance and market transaction. We compare the first two with the third and test the model in the setting of the online brokerage industry by using a sample of 897 moves made by 98 firms between 1994 and 2000. We suggest that firms' entry modes can be differentiated along factors specific to market timing as well as the degree of specificity of targeted capabilities. Our findings show that acquisitions are used to access specific capabilities. This means that external sources can be used when firms face a make-or-buy decision in the aftermath of technological change. Alliances appear to play a limited role while market transactions are widely used. By suggesting that entry into a new industry is not a discrete phenomenon, our research should open the avenue to additional inquiries on this topic.

Suggested Citation

  • Valérie Claude-Gaudillat & Bertrand Quélin, 2004. "Innovation, New Market and Governance Choices of Entry: The Internet Brokerage Market Case," Working Papers hal-00591244, HAL.
    • Handle: RePEc:hal:wpaper:hal-00591244
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Srinivasan Balakrishnan & Birger Wernerfelt, 1986. "Technical change, competition and vertical integration," Strategic Management Journal, Wiley Blackwell, vol. 7(4), pages 347-359, July.
    2. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    3. Gary Hamel, 1991. "Competition for competence and interpartner learning within international strategic alliances," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 83-103, June.
    Full references (including those not matched with items on IDEAS)

    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. Frédéric, DALSACE & Nicola C., DRAGONETTI & Karel, COOL, 2003. "A comparative Test of the Efficiency, focus and Learning Perspectives of Outsourcing," HEC Research Papers Series 776, HEC Paris.
    2. Jaideep Anand & Raffaele Oriani & Roberto S. Vassolo, 2010. "Alliance Activity as a Dynamic Capability in the Face of a Discontinuous Technological Change," Organization Science, INFORMS, vol. 21(6), pages 1213-1232, December.
    3. Sanchez, Ron, 2004. "Understanding competence-based management: Identifying and managing five modes of competence," Journal of Business Research, Elsevier, vol. 57(5), pages 518-532, May.
    4. Pursey Heugens & Stelios Zyglidopoulos, 2008. "From social ties to embedded competencies: the case of business groups," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 12(4), pages 325-341, November.
    5. Kudic, Muhamed & Pyka, Andreas & Günther, Jutta, 2012. "Determinants of Evolutionary Change Processes in Innovation Networks – Empirical Evidence from the German Laser Industry," IWH Discussion Papers 7/2012, Halle Institute for Economic Research (IWH).
    6. Gianluigi Giustiziero & Tobias Kretschmer & Deepak Somaya & Brian Wu, 2023. "Hyperspecialization and hyperscaling: A resource‐based theory of the digital firm," Strategic Management Journal, Wiley Blackwell, vol. 44(6), pages 1391-1424, June.
    7. Beamish, Paul W. & Kachra, Ariff, 2004. "Number of partners and JV performance," Journal of World Business, Elsevier, vol. 39(2), pages 107-120, May.
    8. Yan Tian & Yuan Li & Zelong Wei, 2013. "Managerial Incentive and External Knowledge Acquisition Under Technological Uncertainty: A Nested System Perspective," Systems Research and Behavioral Science, Wiley Blackwell, vol. 30(3), pages 214-228, May.
    9. Erden, Zeynep & Klang, David & Sydler, Renato & von Krogh, Georg, 2014. "Knowledge-flows and firm performance," Journal of Business Research, Elsevier, vol. 67(1), pages 2777-2785.
    10. Kim, Sung Min & Mahoney, Joseph T., 2008. "Resource Co-specialization, Firm Growth, and Organizational Performance: An Empirical Analysis of Organizational Restructuring and IT Implementations," Working Papers 08-0107, University of Illinois at Urbana-Champaign, College of Business.
    11. Dan Huang & Luxun Liu, 2014. "Micro-determinants of vertical integration: Evidence from China," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 377-396, June.
    12. Rothaermel, Frank T. & Deeds, David L., 2006. "Alliance type, alliance experience and alliance management capability in high-technology ventures," Journal of Business Venturing, Elsevier, vol. 21(4), pages 429-460, July.
    13. Li, Zhengyu, 2016. "Essays on knowledge sourcing and technological capability : A knowledge structure perspective," Other publications TiSEM b8ff31fc-c57b-4bc3-b5a4-0, Tilburg University, School of Economics and Management.
    14. James A. Wolff & Richard Reed, 2000. "Firm resources and joint ventures: what determines zero-sum versus positive-sum outcomes?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 21(7), pages 269-284.
    15. Santamaría Sánchez, Luis & Surroca Aguilar, Jorge, 2004. "Idoneidad del socio tecnológico : un análisis con datos de panel," DEE - Documentos de Trabajo. Economía de la Empresa. DB db040704, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    16. Ana Villar & César Camisón Zornoza & Montserrat Boronat, 2009. "New challenges in competitiveness: knowledge development and coopetition," Working Papers. Serie EC 2009-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    17. Heimeriks, K. & Duysters, G.M., 2004. "A study into the alliance capability development process," Working Papers 04.21, Eindhoven Center for Innovation Studies.
    18. Lunnan, Randi & Barth, Theodor, 2003. "Managing the exploration vs. exploitation dilemma in transnational "bridging teams"," Journal of World Business, Elsevier, vol. 38(2), pages 110-126, May.
    19. Stephan Duschek, 2004. "Inter-Firm Resources and Sustained Competitive Advantage," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 15(1), pages 53-73.
    20. Mahka Moeen & Will Mitchell, 2020. "How do pre‐entrants to the industry incubation stage choose between alliances and acquisitions for technical capabilities and specialized complementary assets?," Strategic Management Journal, Wiley Blackwell, vol. 41(8), pages 1450-1489, August.

    More about this item

    Keywords

    Innovation; market entry; capabilities; firm boundaries;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

    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:hal:wpaper:hal-00591244. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.