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Research notes and communications first‐mover effects in multiple dynamic markets
Author(s) -
Mascarenhas Briance
Publication year - 1992
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/smj.4250130306
Subject(s) - first mover advantage , multinational corporation , market share , business , market share analysis , industrial organization , order (exchange) , economics , market microstructure , marketing , finance
A study of first‐mover effects in semi‐submersible oil‐drilling suggests that first‐entrants in international markets maintain higher market share after controlling for market localization and life cycle. Examining only surviving entrants at a point in time inflates this pioneering‐market share relationship. Pioneering has an inter‐market effect on market share, greater than the intra‐market effect. Multinational firms may use market pioneering to resist localization pressures and enhance survival in foreign markets. The study suggests the importance of careful first‐mover identification and market definition, a wider examination of first‐mover effects over multiple markets, and control for measurement timing.