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Joining the pack or going solo? A dynamic theory of new firm positioning

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  • Boone, Christophe
  • Wezel, Filippo Carlo
  • van Witteloostuijn, Arjen

Abstract

The question of new firm positioning in the marketplace and entrant's subsequent long-term performance lies at the heart of strategic entrepreneurship. We suggest a dynamic theory of new firm positioning that hinges on an important feature of the competitive environment: industry-level product diversity. The key argument is that industry-level product diversity drives imitation or differentiation at entry, which in turn shapes the exit likelihood of new entrants. So, in our theory, the extent of the new entrant's product portfolio overlap with all the industry's incumbents takes center stage. Support for our logic is obtained from the analysis of the life histories of 640 British motorcycle producers during the period 1899–1993.

Suggested Citation

  • Boone, Christophe & Wezel, Filippo Carlo & van Witteloostuijn, Arjen, 2013. "Joining the pack or going solo? A dynamic theory of new firm positioning," Journal of Business Venturing, Elsevier, vol. 28(4), pages 511-527.
  • Handle: RePEc:eee:jbvent:v:28:y:2013:i:4:p:511-527
    DOI: 10.1016/j.jbusvent.2012.07.006
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Tang, Yi & Wezel, Filippo Carlo, 2015. "Up to standard?," Journal of Business Venturing, Elsevier, vol. 30(3), pages 452-466.
    2. Christophe Boone & Serden Özcan, 2016. "Strategic Choices at Entry and Relative Survival Advantage of Cooperatives versus Corporations in the US Bio-Ethanol Industry, 1978-2015," Journal of Management Studies, Wiley Blackwell, vol. 53(7), pages 1113-1140, November.
    3. Bird, Miriam & Wennberg, Karl, 2014. "Regional influences on the prevalence of family versus non-family start-ups," Journal of Business Venturing, Elsevier, vol. 29(3), pages 421-436.
    4. Shirokova, G. & Ivvonen, L., 2016. "Performance of Russian SMEs during the economic crisis: The role of strategic entrepreneurship," Working Papers 6454, Graduate School of Management, St. Petersburg State University.

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