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

Gomez, J., Lanzolla, G. & Pablo Maicas, J. (2016). The Role of Industry Dynamics in the Persistence of First Mover Advantages. Long Range Planning, 49(2), pp. 265-281. doi: 10.1016/j.lrp.2015.12.006

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Abstract

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.

Item Type: Article
Additional Information: © 2016, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Cass Business School > Faculty of Management
URI: http://openaccess.city.ac.uk/id/eprint/15193

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