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First come, first served: How market and non-market actions influence pioneer market share

  • Usero, Belén
  • Fernández, Zulima
Registered author(s):

    This study examines the relationship between the erosion of first-mover advantages and the competitive behavior of pioneer and follower firms in a service industry--in this case, the European mobile telecommunications industry. The research analyzes the role of market actions related to innovation, pricing and promotion, and non-market actions related to judicial issues. The study finds that first movers enjoy a sustainable market share advantage in this service industry, but that this advantage depends on the type of actions taken by pioneers and followers. Specifically, followers that take more market actions than the pioneer are not able to erode the first-mover's advantage. However, followers taking more non-market actions - such as litigation and complaints - are successful at taking market share from the pioneer.

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    File URL: http://www.sciencedirect.com/science/article/B6V7S-4TVJ055-1/2/ab224ee136ad976391f1053d8b77e39a
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    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 62 (2009)
    Issue (Month): 11 (November)
    Pages: 1139-1145

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    Handle: RePEc:eee:jbrese:v:62:y:2009:i:11:p:1139-1145
    Contact details of provider: Web page: http://www.elsevier.com/locate/jbusres

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    16. Tufano, Peter, 1989. "Financial innovation and first-mover advantages," Journal of Financial Economics, Elsevier, vol. 25(2), pages 213-240, December.
    17. Barry L. Bayus & Gary Erickson & Robert Jacobson, 2003. "The Financial Rewards of New Product Introductions in the Personal Computer Industry," Management Science, INFORMS, vol. 49(2), pages 197-210, February.
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