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

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  • Usero, Belén
  • Fernández, Zulima

Abstract

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.

Suggested Citation

  • Usero, Belén & Fernández, Zulima, 2009. "First come, first served: How market and non-market actions influence pioneer market share," Journal of Business Research, Elsevier, vol. 62(11), pages 1139-1145, November.
    • Handle: RePEc:eee:jbrese:v:62:y:2009:i:11:p:1139-1145
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    Cited by:

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    3. Wang, Chun-Ju, 2010. "Research on non-market actions: A commentary essay," Journal of Business Research, Elsevier, vol. 63(8), pages 905-907, August.
    4. Dykes, Bernadine J. & Kolev, Kalin D., 2018. "Entry Timing in Foreign Markets: A Meta-analytic Review and Critique," Journal of International Management, Elsevier, vol. 24(4), pages 404-416.
    5. Kunz, Werner & Schmitt, Bernd & Meyer, Anton, 2011. "How does perceived firm innovativeness affect the consumer?," Journal of Business Research, Elsevier, vol. 64(8), pages 816-822, August.
    6. Muck, Johannes & Heimeshoff, Ulrich, 2012. "First mover advantages in mobile telecommunications: Evidence from OECD countries," DICE Discussion Papers 71, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    7. Cosmina Lelia Voinea & Magdelijn Emaus, 2018. "The Effect of Nonmarket Capabilities on Firm Performance: How Knowledge and Capabilities Accumulated from Nonmarket Arenas Contribute to Firm Performance," International Business Research, Canadian Center of Science and Education, vol. 11(1), pages 1-18, January.
    8. Besharat, Ali & Langan, Ryan J. & Nguyen, Carlin A., 2016. "Fashionably late: Strategies for competing against a pioneer advantage," Journal of Business Research, Elsevier, vol. 69(2), pages 718-725.
    9. Vázquez-Maguirre, Mario & Hartmann, Andreas M., 2013. "Nonmarket strategies of media enterprises in the Mexican television industry," Journal of Business Research, Elsevier, vol. 66(10), pages 1743-1749.

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