The Role of Industry Dynamics in the Persistence of First Mover Advantages

  1. Gomez, J. 2
  2. Lanzolla, G. 1
  3. Maicas, J.P. 3
  1. 1 City, University London

    City, University London

    Londres, Reino Unido


  2. 2 Universidad de La Rioja

    Universidad de La Rioja

    Logroño, España


  3. 3 Universidad de Zaragoza

    Universidad de Zaragoza

    Zaragoza, España


Long Range Planning

ISSN: 0024-6301

Year of publication: 2016

Volume: 49

Issue: 2

Pages: 265-281

Type: Article

DOI: 10.1016/J.LRP.2015.12.006 SCOPUS: 2-s2.0-84952685120 WoS: WOS:000376712500008 GOOGLE SCHOLAR


We advance first mover advantages literature by adding novel insights into the conditions that affect the persistence of first mover profitability and market share. We investigate the role of two industry dynamics - market growth and technological discontinuity - and we argue that they will negatively affect the persistence of first mover performance. We test our hypotheses in the context of the European mobile communications industry, by estimating System GMM models on a longitudinal panel of 65 companies in 19 markets, over the period 1998-2008. Model estimations confirm that industry dynamics affect the persistence of first mover advantages. For instance, we find robust empirical evidence that technological discontinuity is detrimental to both first movers' market share and profitability. © 2015 Elsevier Ltd.