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Article
Publication date: 1 December 2000

Scott G. Dacko

Given that the majority of firms are followers of pioneering firms into new, related product markets, managers of almost all firms can benefit from benchmarking their competitive…

1806

Abstract

Given that the majority of firms are followers of pioneering firms into new, related product markets, managers of almost all firms can benefit from benchmarking their competitive responses to pioneering new product introductions. This paper examines the competitive responses of firms not only in terms of the time until their responding new product introduction, but also in terms of the firms’ preceding stages of competitive response: awareness, interest, and evaluation. For example, how long does – and should – it take a follower firm to become aware of a pioneering new product introduction? A general conceptual framework and basic methodology is proposed for firms to evaluate and benchmark their competitive responses. Follower firm responses to pioneering new low‐fat food product introductions in North America are examined and illustrate the opportunity for benchmarking firms’ competitive responses.

Details

Benchmarking: An International Journal, vol. 7 no. 5
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 1 January 2012

Gloria Parra‐Requena, María José Ruiz‐Ortega and Pedro Manuel García‐Villaverde

This paper seeks to examine how dense and cohesive social networks can lead to pioneering. In this sense, the specific aim of this study is to analyse the mediating role placed by…

Abstract

Purpose

This paper seeks to examine how dense and cohesive social networks can lead to pioneering. In this sense, the specific aim of this study is to analyse the mediating role placed by marketing and technological capabilities to explain the link among the structural social capital and the pioneering.

Design/methodology/approach

Focusing on a sample of 224 companies from the Spanish footwear industry, the authors used partial least squares (PLS) with PLS‐Graph software to analyse data.

Findings

The obtained results show how those firms with a dense and strong social network tend to develop pioneering. In this sense, a positive and significant relationship is found between structural social capital and pioneering. Furthermore, a strong positive relationship is found between structural social capital and marketing and technological capabilities, and of both kinds of capabilities with pioneering. The study also finds that the significant relationship between structural social capital and pioneering disappears under the effect of a firm's capabilities.

Research limitations/implications

This study develops a cross‐sectional and non‐longitudinal approach. In any case, it is clear that the cross‐sectional approach of the study suffices for the proposed aims, having already been put to good use in other studies on entry timing.

Practical implications

It is demonstrated how in mature industries such as the footwear industry, albeit unhampered by strong entry and imitation barriers, marketing and technological capabilities position barriers can be established, which favour a firm's expectations of obtaining FMAs.

Originality/value

This study provides theoretical linkages between concepts of several theoretical approaches, social capital, RBV and the FMAs approach.

Details

Journal of Business & Industrial Marketing, vol. 27 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 5 September 2008

Ivan Abel

This study aims to examine validity of the first mover advantage theory (FMA) in the context of digital audio player (DAP) market. It explores two research questions: do…

4036

Abstract

Purpose

This study aims to examine validity of the first mover advantage theory (FMA) in the context of digital audio player (DAP) market. It explores two research questions: do first‐movers improve their resources and capabilities and thus establish industry leadership? Do firms' initial resources affect the timing of entry?

Design/methodology/approach

To overcome the methodological problems of earlier research, the study employs historical analysis of archival sources, capturing the longitudinal nature of the market evolution and competitive dynamics within the industry.

Findings

The results show that pioneering entry is significantly inferior to later entry strategy. While the pioneers failed, Apple Computer, a follower, gained dominance. Firm's resources influence timing of entry. The pioneers are small firms while large firms prefer to enter later.

Research limitations/implications

This study analyzed the evolution of a single radical innovation from its inception through growth stage and results may not apply to continuous innovations.

Practical implications

Managers should understand that it is not the first‐in‐market, but the firm that invests in developing its resources and capabilities in marketing, production and continual product improvement that ends up dominating the new market.

Originality/value

The contribution is identified in three areas as the most important for future research of FMA: it considers advantages of both pioneers and followers in an integrative fashion, it looks into how firms' resources and environmental conditions affect performance, and it uses multiple measures of performance.

Details

Competitiveness Review: An International Business Journal, vol. 18 no. 3
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 1 January 1989

D.W. Haines, R. Chandran and A. Parkhe

Discusses the benefits and disadvantages of pioneering new marketscompared with following prudently into new markets. Argues that whichstrategy is best depends on both conviction…

Abstract

Discusses the benefits and disadvantages of pioneering new markets compared with following prudently into new markets. Argues that which strategy is best depends on both conviction about the product and potential market and the firm′s ability to maintain market leadership. Concludes that a pioneering approach provides critical lead time whereas a follower approach yields benefits in fixed and variable costs.

Details

Journal of Consumer Marketing, vol. 6 no. 1
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 1 July 1996

Dennis J. Cahill

Rebuts the “mythology” that enduring market leaders tend to have been early entrants into their market categories. Demonstrates that, on the one hand, pioneer advantage is…

2391

Abstract

Rebuts the “mythology” that enduring market leaders tend to have been early entrants into their market categories. Demonstrates that, on the one hand, pioneer advantage is realized only if the pioneer succeeds in framing consumer preferences by continually improving the product and differentiating it from those of later‐entry competitors. On the other hand, later entrants to the market, having waited watchfully through a new product’s “long useless stage”, can take advantage of their much lower R&D costs, time their entry to the market as it begins to expand and seize it from the pioneer by adopting a strategy of “imitate and improve”.

Details

Marketing Intelligence & Planning, vol. 14 no. 4
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 23 March 2012

Francisco‐Jose Molina‐Castillo, Ana‐Isabel Rodriguez‐Escudero and Jose‐Luis Munuera‐Aleman

The purpose of this article is to present a model that compares the switching costs that consumers face when they buy pioneering and follower products.

1561

Abstract

Purpose

The purpose of this article is to present a model that compares the switching costs that consumers face when they buy pioneering and follower products.

Design/methodology/approach

A study of 255 new products indicates that switching costs are actually higher when switching from an existing product to a pioneering product.

Findings

The study shows that people who buy a pioneering product may also face switching costs, if the pioneering product is launched in an existing category where consumers are already familiar with similar products.

Research limitations/implications

The results help to reinforce the view that first movers have advantages and demonstrate that switching costs do not lead to a higher level of consumer retention.

Practical implications

This study provides interesting managerial implications on how to launch new products more effectively when they suffer from switching costs..

Originality/value

Researchers commonly view switching costs as a barrier to market entry that protects enterprises that launch pioneering products and gives them a competitive advantage over those that launch follower products. The underlying idea is that people only experience switching costs when they change to a different follower product, rather than when they purchase a pioneering product instead of the product that they usually purchase.

Details

Marketing Intelligence & Planning, vol. 30 no. 2
Type: Research Article
ISSN: 0263-4503

Keywords

Open Access
Article
Publication date: 12 April 2022

Johanna Stöhr and Christian Herzig

This paper examines the socio-ecological co-evolution and transformation of organic pioneers and the organic food market from a politically structuring actor perspective. It aims…

Abstract

Purpose

This paper examines the socio-ecological co-evolution and transformation of organic pioneers and the organic food market from a politically structuring actor perspective. It aims to identify strategies and activities used to contribute to the change of structures in the organic market and how the companies, in turn, reacted to the structural influence of the changing environment to position their company successfully in the market.

Design/methodology/approach

This study is based on interviews with four managing directors who were responsible over several decades for the strategic corporate management of the pioneer companies they founded as (or converted to) organic. Content analysis was used to analyse the data.

Findings

Strategic challenges regarding building up, maintaining and using resources, shaping actor constellations, and professionalising management are explained. The analysis demonstrates that also small pioneers have the possibilities and scope to influence and change markets and structures.

Originality/value

The results are significant for developing sustainable transformation strategies for markets, considering the interaction of the micro and meso-levels over time and the role of small businesses that might be struggling with growth and loss of values. The study answers recent calls in the literature to empirically investigate sustainability transformations from a practice perspective and gain insights into the roles of corporate actors.

Article
Publication date: 29 November 2018

Tarek Mady

The purpose of this paper is to extend the research paradigm focusing on behaviorally-based first-mover advantages (FMA) by applying the widely-accepted Theory of Reasoned Action…

Abstract

Purpose

The purpose of this paper is to extend the research paradigm focusing on behaviorally-based first-mover advantages (FMA) by applying the widely-accepted Theory of Reasoned Action (TRA) and offers insights into differences between a mature market (USA) and an emerging market (EM) (India) regarding how intentions to purchase the pioneer are formed.

Design/methodology/approach

Utilizing samples of 208 USA and 194 Indian consumers, hypotheses examining the underlying beliefs, attitudes, social norms and purchasing intentions regarding pioneer brands are developed and tested using structural equation modeling.

Findings

Insights from the study suggest the TRA provides a means for assessing behaviorally-based FMAs across cultures, even as manifestations of purchase intentions differ significantly. According to the TRA and findings of this study, intentions are a function of overall attitudes and social norms. In the USA, individual attitudes were found to play a more significant role than social norms in formulating purchase intention. In India, social norms played a more dominant role in intention formation.

Originality/value

The study represents one of the first empirical attempts to shed light on the extent of behaviorally-based FMAs in an EM and how manifestations of intention to purchase the pioneer differ from mature markets. The study expands the behavioral paradigm of analysis to include one of the most sought-after EMs today (India) and provides one of the first empirical studies to utilize the TRA in addressing behaviorally-based FMAs.

Details

International Journal of Emerging Markets, vol. 13 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 1 August 2002

Ruth Rettie, Simon Hilliar and Frank Alpert

Pioneer advantage is derived from two sources: producer‐based advantages and consumer‐based advantages. The latter is relatively under‐researched. This research replicates and…

2911

Abstract

Pioneer advantage is derived from two sources: producer‐based advantages and consumer‐based advantages. The latter is relatively under‐researched. This research replicates and extends Alpert and Kamins’ (1995) research, which was the first to directly survey consumers. Since their research occurred only in the USA, cross‐cultural replication is appropriate, (Hubbard and Armstrong, 1994). Key results show that: consumers are able to recall a brand’s pioneering status; pioneer brands generally have higher recall or retrieval than other brands including the market leader; communication of pioneer status may enhance purchase interest, both at the time of the product’s introduction and years after its introduction. These results support the US findings, and are rather more positive. However, British consumers did not agree that, if all other things were equal, they would prefer the pioneer brand. This research also shows for the first time that identification of pioneer status is related to actual purchase of that brand.

Details

European Journal of Marketing, vol. 36 no. 7/8
Type: Research Article
ISSN: 0309-0566

Keywords

Open Access
Article
Publication date: 27 January 2023

Bernardo Ramón Dante De la Gala-Velasquez, Americo Hurtado-Palomino and Elbia Myreyle Chavez Zirena

The purpose of this study is to understand the moderating role of market dynamism in the relationship between organizational flexibility and pioneering behavior in tourism firms…

Abstract

Purpose

The purpose of this study is to understand the moderating role of market dynamism in the relationship between organizational flexibility and pioneering behavior in tourism firms in Arequipa, Peru. This study aims to delve into the antecedents of pioneering orientation understood as a strategic stance that favors the creation and launch of new products in the market.

Design/methodology/approach

This empirical study involved the analysis, using partial least squares regression, of 306 surveys administered to mangers of tourism enterprises. Mediation has also been examined using the bootstrapping method.

Findings

The results show that organizational flexibility has a positive impact on pioneering behavior, while market dynamism positively mediates this relationship.

Practical implications

This work provides interesting theoretical and empirical contributions for the management of firms in the tourism sector. Firms should develop capabilities to reconfigure their processes and products to adequately implement and exploit innovations generated in their organizations. In addition, tourism enterprises should improve their performance by creating new products and/or services, aligned with changes in customers' purchasing and consumption habits.

Originality/value

This study aims to elaborate on the background of pioneering orientation understood as a strategic stance that favors the creation and launch of new products in the market. This study also proposes that market dynamism is a factor to be considered in improving this relationship.

Propósito

El objetivo de este trabajo es comprender el papel moderador del dinamismo del mercado en la relación entre la flexibilidad organizacional y el comportamiento pionero en las empresas de turismo de Arequipa, Perú. El estudio pretende profundizar en los antecedentes de la orientación pionera, entendida como una postura estratégica que favorece la creación y lanzamiento de nuevos productos al mercado.

Diseño/metodología/enfoque

El estudio empírico involucró el análisis, mediante regresión de mínimos cuadrados parciales (PLS), de 306 encuestas administradas a gerentes de empresas turísticas. La mediación también se realizó utilizando el método de “bootstrapping”.

Hallazgos

Los resultados muestran que la flexibilidad organizacional tiene un impacto positivo en el comportamiento pionero, mientras que el dinamismo del mercado media positivamente en esta relación.

Implicaciones practices

El trabajo aporta interesantes aportes teóricos y empíricos para la gestión de empresas del sector turístico. Las empresas deben desarrollar capacidades para reconfigurar sus procesos y productos para implementar y explotar adecuadamente las innovaciones generadas en sus organizaciones. Además, las empresas turísticas deben mejorar su desempeño mediante la creación de nuevos productos y/o servicios, alineados con los cambios en los hábitos de compra y consumo de los clientes.

Originalidad/Valor

El estudio pretende profundizar en el trasfondo de la orientación pionera entendida como una postura estratégica que favorece la creación y lanzamiento de nuevos productos en el mercado. También propone que el dinamismo del mercado es un factor a considerar en la mejora de esta relación.

Details

International Journal of Tourism Cities, vol. 9 no. 1
Type: Research Article
ISSN: 2056-5607

Keywords

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