Entry into Nascent Industries: Disentangling a Firm's Capability Portfolio at the Time of Investment Versus Market Entry

33 Pages Posted: 13 Jun 2016

See all articles by Mahka Moeen

Mahka Moeen

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School

Date Written: May 2016

Abstract

This paper examines the capability antecedents of firm entry into nascent industries. Because a firm’s technological investments in nascent industries typically take place at a time before market entry, this study makes a distinction between capability requirements at the time of market entry versus initial investment. At the time of market entry, core technical capabilities and complementary assets influence the likelihood of entry. However, at the time of investment, a firm’s integrative capabilities as well as the initial stocks of related technical capabilities and complementary assets become critical, as they enable endogenous development of core technical capabilities and complementary assets by the time of entry. The empirical context is the population of firms involved in field experiments in agricultural biotechnology during 1980-2010.

Keywords: Market Entry, Product Commercialization, Pre-entry Capabilities, Integrative Capabilities

JEL Classification: M13, O31, O32, Q16

Suggested Citation

Moeen, Mahka, Entry into Nascent Industries: Disentangling a Firm's Capability Portfolio at the Time of Investment Versus Market Entry (May 2016). Available at SSRN: https://ssrn.com/abstract=2792220 or http://dx.doi.org/10.2139/ssrn.2792220

Mahka Moeen (Contact Author)

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School ( email )

McColl Building
Chapel Hill, NC 27599-3490
United States

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