How does order of entry shape competitive strategy? An analysis for European mobile operators
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1
Universidad de La Rioja
info
Editorial: Academy of Management
ISSN: 0065-0668
Año de publicación: 2017
Volumen: 17
Número: 1
Congreso: 77th Annual Meeting of the Academy of Management, AOM 2017
Tipo: Aportación congreso
Resumen
Research on first mover advantages is interested in the performance effects of the order of entry into new markets. However, with a few exceptions, the competitive strategies used by different cohorts of entrants have not been studied. In this paper, we advance research on first mover advantages by focusing on the competitive strategies employed by firms that differ in their order of entry. We propose that pioneers, early followers and late entrants differ in terms of the competitive strategy employed. Additionally, we argue that the different competitive strategies used evolve over time. To test our hypotheses we use data from the European mobile industry. Our findings show that pioneers tend to focus on service quality and that they are able to generate more value through higher prices. Unexpectedly, we find that pioneers also benefit from better cost structures than late followers. However, over time, pioneers worsen their relative position in terms of operating costs.