Order and Scale of Market Entry, Firm Resources, and Performance

This file is part of IDEAS, which uses RePEc data

Order and Scale of Market Entry, Firm Resources, and Performance

Author Info

Rodríguez-Pinto, Javier () (Departamento de Organización de Empresas y Comercialización e Investigación de Mercados, Facultad de Ciencias Económicas y Empresariales, Universidad de Valladolid)
Gutiérrez Cillán, Jesús () (Departamento de Organización de Empresas y Comercialización e Investigación de Mercados, Facultad de Ciencias Económicas y Empresariales, Universidad de Valladolid)
Rodríguez-Escudero, Ana I. () (Departamento de Organización de Empresas y Comercialización e Investigación de Mercados, Facultad de Ciencias Económicas y Empresariales, Universidad de Valladolid)

Abstract

This paper aims to examine whether order and scale of market entry influence a new product’s market and financial performance, and how marketing and R&D resources strengthen or weaken these effects. Through a mail survey, data were collected on a sample of 136 product launches by Spanish manufacturing firms. A moderated hierarchical regression analysis enabled the assessment of the relevance of order and scale as well as their interactions with marketing and R&D resources to explain a product’s competitive position. Moreover, a mediation analysis allowed us to determine whether market entry strategy (indirectly) affects financial performance. The analyses show that pioneering firms and those entering the market with a full-scale launch achieve advantages in terms of competitive position, and that this variable mediates the relationship of order and scale with profitability. The empirical results also reveal that such advantages are conditioned by the availability of marketing and R&D resources. The decisions regarding order and scale of market entry are contingent. Managers involved in the planning of a new product launch should be knowledgeable about their firm’s resources and capabilities before determining when and how to enter the market. Many papers study the effects of order-of-entry on market share, but other dimensions of a new product launch strategy, such as scale, have largely been ignored. The research examines the effects of both variables on competitive position and profitability. This is also one of the first studies that explores the moderating effect exerted by resources and capabilities in the launch strategy-performance relationship.

Download Info
To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" 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.

Publisher Info
Paper provided by Interuniversitary Doctorate Program "New Trends on Business Administration", Universities of Valladolid, Burgos and Salamanca (Spain). Programa de Doctorado Interuniversitario "Nuevas Tendencias en Dirección de Empresas", Universidades de Valladolid, Burgos y Salamanca (España). in its series Documentos de Trabajo "Nuevas Tendencias en Dirección de Empresas". Working Papers "New Trends on Business Administration". with number 2006-08.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 18 pages
Date of creation: Dec 2006
Date of revision:
Publication status: Published in European Journal of Marketing, vol. 41, no. 5-6, 2007, pages 590-607
Handle: RePEc:ntd:wpaper:2006-08

Contact details of provider:
Postal: Avda. Valle Esgueva, 6, 47011 Valladolid
Phone: +34 983 420000 ext. 4392
Fax: +34 983 423899
Email:
Web page: http://www3.uva.es/empresa/
More information through EDIRC

Order Information:
Postal: Av. Valle de Esgueva, 6. E-47011-Valladolid (Spain)
Email:

For technical questions regarding this item, or to correct its listing, contact: (Fortuna-Lindo, Jose M.).

Statistics
Access and download statistics

Did you know? You too can volunteer with RePEc.

This page was last updated on 2008-8-5.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.