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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…

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

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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…

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

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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…

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3676

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‐inmarket, 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

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Article
Publication date: 14 August 2007

Andrew Cox, Daniel Chicksand and Tong Yang

The purpose of this paper is to show that a proactive sourcing strategy can be just as important as a proactive marketing strategy in achieving sustainable competitive advantage.

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5511

Abstract

Purpose

The purpose of this paper is to show that a proactive sourcing strategy can be just as important as a proactive marketing strategy in achieving sustainable competitive advantage.

Design/methodology/approach

The paper reports on action research carried out in the UK beef industry, with a focus on the food service supply chain. The methodology is inductive and qualitative, using a multi‐case, multi‐site approach. The supply chains presented in the case were analysed from farm gate to consumer, interviewing multiple participants at each stage of the supply chain.

Findings

This study offers some partial support for configuration‐based approaches. However, the case also raises some doubts about the validity of configuration thinking, as it is not the complexity or ambiguity of the relationships that is key in the case, but the fact that brand ownership and contracts create property rights for their owner that create a relatively permanent power resource for Pioneer, the case study company, in its market struggle with its customers and competitors. This interpretation supports the power and property rights views of strategic management rather than the configuration approach.

Research limitations/implications

The research is based upon in‐depth knowledge of the UK beef and red meat industry. It would be beneficial if further in‐depth studies could be undertaken in other agri‐food supply chains to further validate the findings.

Practical implications

Although the focus of this article has been upon choosing appropriate sourcing strategies, the case study has also illustrated the importance for business managers of linking this sourcing strategy with a firm's marketing, and more specifically its branding strategy.

Originality/value

The paper analyses the key differences in demand, supply and power and leverage characteristics in the food service beef supply chain to highlight the need for government agencies, think‐tanks and industry participants to have a more robust understanding of industries before advocating the adoption of any one approach for all UK agri‐food supply chains. This paper should be of value to researchers in this area and to managers responsible for strategy formation in UK agri‐food supply chains.

Details

Supply Chain Management: An International Journal, vol. 12 no. 5
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 5 June 2007

Javier Rodríguez‐Pinto, Jesús Gutiérrez‐Cillán and Ana I. Rodríguez‐Escudero

This paper aims to examine whether order and scale of market entry influence a new product's market and financial performance, and how marketing and R&D resources…

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3715

Abstract

Purpose

This paper aims to examine whether order and scale of market entry influence a new product's market and financial performance, and how marketing and R&D resources strengthen or weaken these effects.

Design/methodology/approach

Through a mail survey, data were collected on a sample of 136 product launches by Spanish manufacturing firms. A moderated hierarchical regression analysis enabled the assessment of the relevance of order and scale as well as their interactions with marketing and R&D resources to explain a product's competitive position. Moreover, a mediation analysis allowed us to determine whether market entry strategy (indirectly) affects financial performance.

Findings

The analyses show that pioneering firms and those entering the market with a full‐scale launch achieve advantages in terms of competitive position, and that this variable mediates the relationship of order and scale with profitability. The empirical results also reveal that such advantages are conditioned by the availability of marketing and R&D resources.

Practical implications

The decisions regarding order and scale of market entry are contingent. Managers involved in the planning of a new product launch should be knowledgeable about their firm's resources and capabilities before determining when and how to enter the market.

Originality/value

Many papers study the effects of order‐of‐entry on market share, but other dimensions of a new product launch strategy, such as scale, have largely been ignored. The research examines the effects of both variables on competitive position and profitability. This is also one of the first studies that explores the moderating effect exerted by resources and capabilities in the launch strategy‐performance relationship.

Details

European Journal of Marketing, vol. 41 no. 5/6
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 1 April 2001

Frank Alpert, Michael Kamins, Tomoaki Sakano, Naoto Onzo and John Graham

One potential source of pioneer brand advantage is retail buyers’ preference for pioneer brands. A model of pioneer brand advantage with retailers developed in the USA was…

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5103

Abstract

One potential source of pioneer brand advantage is retail buyers’ preference for pioneer brands. A model of pioneer brand advantage with retailers developed in the USA was tested in Japan, as a replication and cross‐cultural extension. This provides the first empirical study of Japanese retail buyer beliefs, attitude, and behavior toward new offerings, and the first direct statistical comparison of US and Japanese retail buying behavior in the marketing literature. Similarities and differences in pioneer brand advantage with retailers between Japan and the USA are discussed. Results from a survey of buyers from Japan’s largest supermarket chains suggest that pioneer brand advantage is about as strong for them as for their US counterparts, though for somewhat different reasons. The survey’s results were analyzed in two ways (through a multi‐attribute attitude model and a PLS causal model), with results that complement and corroborate one another. Data were standardized to deal with potential extreme response style bias.

Details

International Marketing Review, vol. 18 no. 2
Type: Research Article
ISSN: 0265-1335

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Article
Publication date: 1 December 2020

Frank Tian Xie, Naveen Donthu and Wesley J. Johnston

This paper aims to present a new framework that describes the relationship among market entry order and timing, the advantages accruing to first-movers and late-movers…

Abstract

Purpose

This paper aims to present a new framework that describes the relationship among market entry order and timing, the advantages accruing to first-movers and late-movers, entry timing premium (ETP), marketing strategy and enduring market performance of the firms. The framework, empirically tested using data from 241 business executives, expands extant research into new territory beyond first- and late-mover advantages in an attempt to reconcile a few streams of research in the area and provides an entry related, strategic assessment tool (ETP) for the managers. Contribution to marketing strategy theory and managerial implications are also presented.

Design/methodology/approach

Participants included informants in a firm’s strategic business unit who were the most familiar with a new product’s commercial launch, market condition at launch, competitor offerings, marketing activities and capabilities and eventual integration into or withdrawal from the product’s portfolio. Therefore, for the survey, the study targeted chief executive officers, vice presidents of marketing or sales, product or sales managers, general managers and regional managers. Both preference bias (Narus, 1984) and survivor biases among the respondents were addressed.

Findings

The research result of this study reveals two very significant aspects of marketing and marketing strategies. First, the importance of financial, pricing and cost strategies further attests to the fiercely competitive nature of the global market today and the tendency for firms to commoditize most products and services. An effective financial and pricing strategy, coupled with a higher level of ETP, is capable of leading a firm to initial market success in the product-market in which it competes. Both ETP (a positional advantage and resource of the firm) and financial and pricing strategies (a deliberate strategic decision of the management) are important to achieve this goal.

Research limitations/implications

This study is limited in several ways. The effects of entry order and timing on market performance could be dependent on the types of industries and types of product categories involved. However, as the hypotheses were well supported, the “industry specific” factors would provide “fine-tuning” in the future study. Second, the nature of the product (goods or services) may also present varying effects on the relationship studied (for differences between manufacturing and service firms in pioneering advantages, see Song et al., 1999). Services’ intangible nature, difficulty in protecting property rights, high involvement of boundary-spanning employees and customers, high reliance on delivery and quality, and ease of imitation may alter the proposed relationships in the model and the moderating effects. Third, although this study used a “retrospective” protocol approach in the data collection by encouraging respondents to recall market, product and business information, this study is not longitudinal. Lack of longitudinal data in any study involving strategic planning, strategy execution and the long-term effects is no doubt a weakness. In addition, due to peculiarity and complexity with regard to regulation and other aspects in pharmaceutical and other industries, the theory might be limited to a certain extent.

Practical implications

In all, the integrated framework contributes to the understanding of the intricate issues surrounding first-mover advantage, late-mover advantage, entry order and timing and the role of marketing strategy. The framework provides practitioners guidance as to when to enter a product-market to gain advantageous positions and how to maintain that advantage. Firms that use a deliberate late-mover strategy could also benefit from the research finding in mapping out their strategic courses of action.

Originality/value

This study believes that the halo effect surrounding first-mover advantage may have obscured the visions of some researchers and managers, and the pursuit of a silver bullet has led to frenzied interests in becoming a “first-mover” or a deliberate “late-mover”. The theoretical framework, which is substantiated by empirical testing, invalidates the long-held claim that entry of a particular kind (first-movers or late-movers) yields any unique competitive advantage. It is a firms’ careful selection of marketing strategies and careful execution of the strategies through effective operational tactics that would lead to enduring competitive advantage, under an adequate level of ETP.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 7
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 1 October 2000

Sandra S. Liu and Michael Cheng

The pharmaceutical industry in the People’s Republic of China (PRC) has been highly regulated, particularly ethical products. Promulgation of the socialist market economy…

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2974

Abstract

The pharmaceutical industry in the People’s Republic of China (PRC) has been highly regulated, particularly ethical products. Promulgation of the socialist market economy and the recent reforms in national healthcare industry have compelled impetuses for change in the distribution systems, forms of investment of multinational pharmaceutical companies, and product/market strategies. The conventional wisdom on pioneer marketing may be challenged by these situations in the PRC. This study examines four markets that encompass both specialty and general pharmaceuticals so as to explore whether there is a product category effect on entry strategies. The findings indicate a possible synergistic effect of product category and order of entry. In addition, product life cycle has a direct impact on order of entry whereas brand position has an effect on product category. Both government policies and corporate strategies have implications on product categories and order of entry. The recent reforms in China have helped to build a foundation for pharmaceutical companies to conduct business in a manner that is similar to that of the developed countries. The entry strategies for pharmaceuticals may therefore involve more complicated considerations in accordance with these new arrangements in the legal and regulatory environments. Further research into relationships among these variables and the mediation effect is therefore indicated.

Details

Marketing Intelligence & Planning, vol. 18 no. 5
Type: Research Article
ISSN: 0263-4503

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Article
Publication date: 17 August 2012

Ian Clark S. Sinapuelas and William T. Robinson

The purpose of this paper is to investigate the pricing strategies of me‐too brands.

Downloads
1360

Abstract

Purpose

The purpose of this paper is to investigate the pricing strategies of me‐too brands.

Design/methodology/approach

This research estimates an empirical model using a panel data of 20 consumer packaged goods sub‐categories.

Findings

Me‐too brands face pricing constraints that restrict them from pricing aggressively versus the feature pioneer. The results show that private label brands have the most flexibility to price aggressively. Line extensions me‐toos and new brand name me‐toos do not cut price. Line extensions of national brands are constrained by their parent brand's prices. New brand names are constrained by the higher costs of launching a new brand name. Thus, it appears that consistent product line pricing and covering the costs of launching a new brand name limit price competition versus the feature pioneer.

Research limitations/implications

This research is limited by the lack of distribution data, the lack of customer mind‐set measures of brand equity, and the limited number of private label me‐toos in the sample.

Practical implications

Feature pioneers need not worry about price cutting from line extension and new brand name me‐toos. They can set prices to cover their development costs and meet their strategic goals. Without the ability to undercut the feature pioneer, me‐too brands need to utilize other marketing tools to compensate for delayed entry.

Originality/value

Conventional wisdom suggests a me‐too brand succeeds if it charges a low price as low prices are essential to obtain trial. This paper provides empirical evidence that certain types of me‐too brands are restricted from aggressive price cutting.

Details

Journal of Product & Brand Management, vol. 21 no. 5
Type: Research Article
ISSN: 1061-0421

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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…

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2321

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

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