Sustainable pioneering advantage? Profit implications of market entry order

摘要

In sharp contrast to the empirical findings on the strategic advantages on market share for the first-to-enter, the present study finds that at the business unit level, being first to market leads, on average, to a long term profit disadvantage. This is exemplified with samples from mature market in consumer durables and nondurables and industrial products. In general, pioneers differentially benefit from a lack of consumer learning, a strong market position and patent protection. All three moderating factors help the pioneers achieve a sustainable profit advantage over later entrants. There is strong support for the theoretical argument that the entry order decision should be treated as endogenous in empirical estimation.