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Brand Capital and Entry Order

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  • Louis A. Thomas

Abstract

This paper develops the hypothesis that firms possess a stock of well‐established brands, a stock termed brand capital. The firm with the greatest capital is able to introduce new products in response to new information about consumer tastes before rivals. The results using data from the ready‐to‐eat cereal industry not only support this hypothesis, but also distinguish brand capital from other sources of firm heterogeneity.

Suggested Citation

  • Louis A. Thomas, 1996. "Brand Capital and Entry Order," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 5(1), pages 107-129, March.
    • Handle: RePEc:bla:jemstr:v:5:y:1996:i:1:p:107-129
    DOI: 10.1111/j.1430-9134.1996.00107.x
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    References listed on IDEAS

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    1. Lieberman, Marvin B, 1987. "Excess Capacity as a Barrier to Entry: An Empirical Appraisal," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 607-627, June.
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    Cited by:

    1. Michael, Steven C., 2003. "First mover advantage through franchising," Journal of Business Venturing, Elsevier, vol. 18(1), pages 61-80, January.
    2. Levesque, Moren & Shepherd, Dean A., 2002. "A new venture's optimal entry time," European Journal of Operational Research, Elsevier, vol. 139(3), pages 626-642, June.
    3. 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.
    4. Manish Popli & Ashutosh Sinha, 2014. "Determinants of early movers in cross-border merger and acquisition wave in an emerging market: A study of Indian firms," Asia Pacific Journal of Management, Springer, vol. 31(4), pages 1075-1099, December.
    5. Sanja Mitić, 2015. "External Relationships And Marketing Practices In Serbian Firms: The Intangible Capital Perspective," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 60(204), pages 75-104, January –.
    6. Armbruster, Kathrin & Beckmann, Michael & Kuhn, Dieter, 2012. "Task Allocation and Corporate Performance : is There a First-Mover Advantage?," Working papers 2012/07, Faculty of Business and Economics - University of Basel.
    7. Thomas, Louis A., 1999. "Incumbent firms' response to entry: Price, advertising, and new product introduction," International Journal of Industrial Organization, Elsevier, vol. 17(4), pages 527-555, May.
    8. Afuah, Allan, 2004. "Does a focal firm's technology entry timing depend on the impact of the technology on co-opetitors?," Research Policy, Elsevier, vol. 33(8), pages 1231-1246, October.
    9. 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.
    10. Ruiz-Ortega, María J. & García-Villaverde, Pedro M. & Parra-Requena, Gloria, 2018. "How structural embeddedness leads to pioneering orientation," Technological Forecasting and Social Change, Elsevier, vol. 134(C), pages 186-198.

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