Abstract
We extend the concept of first-mover advantage to the context of high-technology industries with multiple product generations, and propose that the notion of first-mover advantage needs to be viewed not only through a dynamic lens, but also in conjunction with technological capability. Our main finding is that first-mover advantages are best understood in tandem with the firm's technological capabilities; early entry is beneficial only for pioneers that are technically strong. However, pioneers that are low on technological capabilities suffer from poor survival rates vis-à-vis market responders or nonentrants into new product generations.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 1842-1860 |
| Number of pages | 19 |
| Journal | Management Science |
| Volume | 55 |
| Issue number | 11 |
| DOIs | |
| State | Published - Nov 2009 |
Keywords
- Dynamic capabilities
- Entrepreneurship
- First-mover advantage
- Industry evolution
- Strategy
- Technology strategy
ASJC Scopus subject areas
- Strategy and Management
- Management Science and Operations Research