Premium
Timing, order and durability of new product advantages with imitation
Author(s) -
Lee Hun,
Smith Ken G.,
Grimm Curtis M.,
Schomburg August
Publication year - 2000
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/(sici)1097-0266(200001)21:1<23::aid-smj64>3.0.co;2-0
Subject(s) - first mover advantage , durability , imitation , order (exchange) , product (mathematics) , new product development , market share , build to order , stock (firearms) , industrial organization , computer science , economics , business , marketing , engineering , microeconomics , mathematics , mechanical engineering , psychology , production (economics) , social psychology , geometry , finance , database
This research examined the effects of timing, order and the durability of first mover advantages by analyzing the stock market reactions to new product introductions and imitations. The major findings are that both timing and order of moves are important and that rival reactions undermine the durability of first mover advantages. More specifically, (1) early and fast movers achieve greater gains than late and slow movers, and (2) first movers suffer at the time of new product imitations. Copyright © 2000 John Wiley & Sons, Ltd.