Environmental Influences Upon Firm Entry into New Sub-Markets: Evidence from the Worldwide Hard Disk Drive Industry

38 Pages Posted: 18 Apr 2002

See all articles by Henry Chesbrough

Henry Chesbrough

Harvard University - Entrepreneurial Management Unit; University of California, Berkeley - Haas School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: February 2002

Abstract

Firms need to access skills, capital, and customers to enter into an industry initially, and the choices they make to access these resources are likely to exert path dependent influences over subsequent entry behavior into new submarkets. This paper explores how firms configure themselves to access skills, capital and customers, and reports data on their association with whether and when firms enter new sub-markets in the worldwide hard disk drive industry. While, as with other studies, there appear to be geographic differences between US and Japanese firms in sub-market entry behavior, these are shown not to simply reflect differences in region: US startup firms with former IBM personnel, and Japanese incumbent firms with keiretsu linkages to their customers, exhibit different entry behavior than other firms in the same region. The analysis suggests that entry decisions are influenced by firms' configuration choices to access needed resources, and that the menu of configuration options available to firm managers varies across different institutional settings.

Keywords: Sub-market entry, disruption, comparative, US-Japan

JEL Classification: B52, O32, O31, O33

Suggested Citation

Chesbrough, Henry, Environmental Influences Upon Firm Entry into New Sub-Markets: Evidence from the Worldwide Hard Disk Drive Industry (February 2002). Available at SSRN: https://ssrn.com/abstract=305481 or http://dx.doi.org/10.2139/ssrn.305481

Henry Chesbrough (Contact Author)

Harvard University - Entrepreneurial Management Unit ( email )

Cambridge, MA 02163
United States
617-495-5037 (Phone)
617-496-4072 (Fax)

University of California, Berkeley - Haas School of Business ( email )

545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States
510-643-2067 (Phone)

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