IDEAS home Printed from https://ideas.repec.org/a/bla/jomstd/v56y2019i7p1482-1512.html
   My bibliography  Save this article

Entry‐Timing Advantages in Renewable Natural Resources Industries

Author

Listed:
  • Alejandro F. Mac Cawley
  • Ángel Sevil
  • Roberto S. Vassolo
  • José Ignacio Sepúlveda Vargas

Abstract

In this paper, we explore the conditions of entry‐timing advantages in renewable natural resource industries. Drawing from behavioural theory of the firm, we classify firms in two groups depending on the different heuristics used to make entry decisions when facing the cyclical endogenous nature of these industries: crowd firms are procyclical, making decisions based on the current phase of the industry cycle, whereas anti‐crowd firms follow a countercyclical strategy, making uncertain, and risky decisions by estimation of the next phase of the cycle. Therefore, anti‐crowd firms anticipate the deployment of resources each cycle, potentially gaining entry‐timing advantages beyond those provided by traditional competitive isolating mechanisms. Through a mathematical simulation of a performance feedback model, we reveal that the entry‐timing advantage of the anti‐crowd group becomes possible when the rivalry in the industry and the price sensitivity of competitors are high, and when the time required to deploy the resources is short.

Suggested Citation

  • Alejandro F. Mac Cawley & Ángel Sevil & Roberto S. Vassolo & José Ignacio Sepúlveda Vargas, 2019. "Entry‐Timing Advantages in Renewable Natural Resources Industries," Journal of Management Studies, Wiley Blackwell, vol. 56(7), pages 1482-1512, November.
    • Handle: RePEc:bla:jomstd:v:56:y:2019:i:7:p:1482-1512
    DOI: 10.1111/joms.12436
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/joms.12436
    Download Restriction: no
    File URL: https://libkey.io/10.1111/joms.12436?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yanjie Wu & Sujuan Wang, 2021. "Sustainable Market Entry Strategy under a Supply Chain Environment," Sustainability, MDPI, vol. 13(6), pages 1-15, March.

    More about this item

    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:bla:jomstd:v:56:y:2019:i:7:p:1482-1512. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2380 .

    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.