Journal
JOURNAL OF BUSINESS RESEARCH
Volume 62, Issue 11, Pages 1139-1145Publisher
ELSEVIER SCIENCE INC
DOI: 10.1016/j.jbusres.2008.07.005
Keywords
Pioneer advantage; Market actions; Innovation; Non-market actions; Legal actions; Service industries; Telecommunications industry
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This study examines the relationship between the erosion of first-mover advantages and the competitive behavior of pioneer and follower firms in a service industry-in this case, the European mobile telecommunications industry. The research analyzes the role of market actions related to innovation, pricing and promotion, and non-market actions related to judicial issues. The study finds that first movers enjoy a sustainable market share advantage in this service industry, but that this advantage depends on the type of actions taken by pioneers and followers. Specifically, followers that take more market actions than the pioneer are not able to erode the first-mover's advantage. However, followers taking more non-market actions - such as litigation and complaints - are successful at taking market share from the pioneer. (C) 2008 Elsevier Inc. All rights reserved.
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