Swift and Smart: The Moderating Effects of Technological Capabilities on the Market Pioneering - Firm Survival Relationship

35 Pages Posted: 16 Jan 2008

See all articles by April Franco

April Franco

University of Toronto - Rotman School of Management; University of Toronto at Scarborough - Division of Management

M. B. Sarkar

University of Central Florida - College of Business Administration

Rajshree Agarwal

University of Maryland - Robert H. Smith School of Business

Raj Echambadi

Independent

Date Written: November 1, 2007

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 contingent upon the magnitude of the firm's technological capabilities; early entry is beneficial only for pioneers that are technically strong. However, pioneers that are low on technological capabilities suffered from poor survival rates vis-à-vis market responders or non-entrants into new product generations.

Keywords: first mover advantage, technological capabilities, industry evolution, firm survival, timing of entry

JEL Classification: L10, L63, M13, O33

Suggested Citation

Franco, April and Sarkar, M. B. and Agarwal, Rajshree and Echambadi, Raj, Swift and Smart: The Moderating Effects of Technological Capabilities on the Market Pioneering - Firm Survival Relationship (November 1, 2007). Available at SSRN: https://ssrn.com/abstract=1083282 or http://dx.doi.org/10.2139/ssrn.1083282

April Franco

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

University of Toronto at Scarborough - Division of Management ( email )

1265 Military Trial
Scarborough, Ontario M1C 1A4
Canada

M. B. Sarkar

University of Central Florida - College of Business Administration ( email )

PO Box 161400
Orlando, FL 32816
United States

Rajshree Agarwal (Contact Author)

University of Maryland - Robert H. Smith School of Business ( email )

College Park, MD 20742-1815
United States

Raj Echambadi

Independent

No Address Available

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