How does order of entry shape competitive strategy? An analysis for European mobile operators

  1. Jaime Gómez Villascuerna 1
  2. Beatriz Pérez-Aradros 1
  3. Idana Salazar 1
  1. 1 Universidad de La Rioja
    info

    Universidad de La Rioja

    Logroño, España

    ROR https://ror.org/0553yr311

Actas:
77th Annual Meeting of the Academy of Management, AOM 2017

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

DOI: 10.5465/AMBPP.2017.265 SCOPUS: 2-s2.0-85046446521 GOOGLE SCHOLAR

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.