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First come, first served: an analysis of pioneer and follower firms' market and nonmarket actions in the European mobile telephone industry

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  • Usero Sánchez, María Belén
  • Fernández, Zulima

Abstract

This study examines the relationship between erosion of the first-mover's market share and the differences in competitive behaviour of pioneer firms and followers. Particularly, we pay particular attention to market actions related to innovation, pricing and promotion, and to non-market actions related to judicial issues. The empirical study has been carried out with companies that are present in a dynamic context, such as the European mobile telephone industry. Our results show that when followers take more non-market actions than pioneers the negative effect on the firstentrant's advantage is more significant. On the contrary, we have not found a significant impact of innovating and pricing actions.

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  • Usero Sánchez, María Belén & Fernández, Zulima, 2005. "First come, first served: an analysis of pioneer and follower firms' market and nonmarket actions in the European mobile telephone industry," DEE - Working Papers. Business Economics. WB wb054812, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
  • Handle: RePEc:cte:wbrepe:wb054812
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    1. David P. Baron, 1997. "Integrated Strategy and International Trade Disputes: The Kodak-Fujifilm Case," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 6(1), pages 291-346, June.
    2. 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.
    3. David R. Bell & Jeongwen Chiang & V. Padmanabhan, 1999. "The Decomposition of Promotional Response: An Empirical Generalization," Marketing Science, INFORMS, vol. 18(4), pages 504-526.
    4. Sanjai Bhagat & John Bizjak & Jeffrey L. Coles, 1998. "The Shareholder Wealth Implications of Corporate Lawsuits," Financial Management, Financial Management Association, vol. 27(4), Winter.
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