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Dominance by birthright: entry of prior radio producers and competitive ramifications in the U.S. television receiver industry
Author(s) -
Klepper Steven,
Simons Kenneth L.
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 - 10.1002/1097-0266(200010/11)21:10/11<997::aid-smj134>3.0.co;2-o
Subject(s) - dominance (genetics) , oligopoly , market structure , industrial organization , television industry , competition (biology) , business , market share , telecommunications , barriers to entry , economics , marketing , advertising , microeconomics , computer science , cournot competition , biochemistry , biology , gene , ecology , chemistry
The U.S. television receiver industry evolved to be an oligopoly dominated by firms that produced radios prior to TVs. Data on the experience of all U.S. radio manufacturers and on the length of survival and rate of innovation of all U.S. TV entrants are collected to analyze how radio experience influenced entry, firm performance, and the evolution of market structure in the TV industry. Consistent with a model of the evolution of an oligopolistic industry, more experienced radio firms were more likely to enter TV manufacturing, had higher innovation rates, and in turn had greater market shares and longer survival, suggesting that firm capabilities and the evolution of the TV industry's market structure were critically shaped by firms' experience prior to entry. Copyright © 2000 John Wiley & Sons, Ltd.