nach oben

Review of Managerial Science

Erschienen in:

08.02.2019 | Original Paper

The role of product line breadth, product pre-entry experience, and market uncertainty in explaining followers’ speed of feature entry

verfasst von: Zhe OuYang, Peng Cheng, Yang Liu

Erschienen in: Review of Managerial Science | Ausgabe 6/2020

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

Previous entry timing studies have reinforced the timing wisdom by primarily focusing on new markets. This inductive study investigates how firms make decisions about the entry speed of new product features to a well-developed market using a classification of two dimensions of entry speed, namely internal and external. The analysis uses empirical data from 565 new product entry events by followers (not first movers) in the Chinese auto industry from 2011 to 2013 to explore the impacts of the follower’s product line breadth and product pre-entry experience on its internal and external feature-entry speed. We find that both product line breadth and product pre-entry experience can accelerate the speed of internal entry while only the firm product line breadth deters the external entry. Additionally, market-specific uncertainty moderates the relationship between breadth, experience and entry speed decisions. Greater market uncertainty tends to boost the internal and external entry speed than that of lower uncertainty.

Vorheriger Artikel Trends and turning points of banking: a timespan view

Nächster Artikel Do board characteristics drive firm performance? An international perspective

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Bayus BL, Agarwal R (2007) The role of pre-entry experience, entry timing, and product technology strategies in explaining firm survival. Manag Sci 53(12):1887–1902

Bayus BL, Putsis WP Jr (1999) Product proliferation: an empirical analysis of product line determinants and market outcomes. Market Sci 18(2):137–153

Beckman CM, Haunschild PR, Phillips DJ (2004) Friends or strangers? Firm-specific uncertainty, market uncertainty, and network partner selection. Organ Sci 15(3):259–275

Boulding W, Christen M (2003) Sustainable pioneering advantage? Profit implications of market entry order. Market Sci 22:371–392

Bouncken RB, Pesch R, Kraus S (2015) SME innovativeness in buyer–seller alliances: effects of entry timing strategies and inter-organizational learning. RMS 9(2):361–384

Brown SL, Eisenhardt KM (1998) Competing on the edge: strategy as structured chaos. Harvard Business Press, Cambrige

Buzzell RD, Gale BT (1987) The PIMS principles: linking strategy to performance. Simon and Schuster, New York

CATRC (2013) Chinese automotive industry yearbook. China Automotive Technology Research Center, Tianjin

CFLP (2013) Chinese automotive market yearbook. China Federation of Logistics and Purchasing: China Business Press, Beijing

Chin GT (2010) China’s automotive modernization: the party-state and multinational corporations. Palgrave Macmillan, London

Clark KB, Fujimoto T (1991) Product development performance: strategy, organization, and management in the world auto industry. Harvard Business Press, Boston

D’Aveni RA, Dagnino GB, Smith KG (2010) The age of temporary advantage. Strateg Manag J 31(13):1371–1385

De Figueiredo JM, Kyle MK (2006) Surviving the gales of creative destruction: the determinants of product turnover. Strateg Manag J 27(3):241–264

Dean TJ (1995) New venture formations in United States manufacturing: the role of industry environments. Garland Publishing, New York

Debruyne M, Reibstein DJ (2005) Competitor see, competitor do: incumbent entry in new market niches. Market Sci 24(1):55–66

Dencker JC, Gruber M, Shah SK (2009) Pre-entry knowledge, learning, and the survival of new firms. Organ Sci 20(3):516–537

Dowell G (2006) Product line strategies of new entrants in an established industry: evidence from the US bicycle industry. Strateg Manag J 27(10):959–979

Dowell G, Killaly B (2009) Effect of resource variation and firm experience on market entry decisions: evidence from us telecommunication firms’ international expansion decisions. Organ Sci 20(1):69–84

Dreyer B, Grønhaug K (2004) Uncertainty, flexibility, and sustained competitive advantage. J Bus Res 57(5):484–494

Essling C (2013) Uncertainty, flexibility and market entry. In: Academy of management proceedings, vol 2013, no 1. Academy of Management, p 11472

Ethiraj SK, Zhu DH (2008) Performance effects of imitative entry. Strateg Manag J 29(8):797–817

Folta TB, O’Brien JP (2004) Entry in the presence of dueling options. Strateg Manag J 25(2):121–138

Franco AM, Sarkar MB, Agarwal R, Echambadi R (2009) Swift and smart: the moderating effects of technological capabilities on the market pioneering-firm survival relationship. Manag Sci 55(11):1842–1860

Fuentelsaz L, Gomez J, Polo Y (2002) Followers’ entry timing: evidence from the Spanish banking sector after deregulation. Strateg Manag J 23(3):245–264

Gaba V, Pan Y, Ungson GR (2002) Timing of entry in international market: an empirical study of US Fortune 500 firms in China. J Int Bus Stud 33(1):39–55

García-Villaverde PM, Ruiz-Ortega MJ, Parra-Requena G (2012) Towards a comprehensive model of entry timing in the ICT industry: direct and indirect effects. J World Bus 47(2):297–310

Gimeno J, Woo CY (1999) Multimarket contact, economies of scope, and firm performance. Acad Manag J 42(3):239–259

Greve HR (2000) Marketing niche entry decisions: competition, learning, and strategy in Tokyo banking, 1894–1936. Acad Manag J 43(5):816–836

Hawk A, Pacheco-De-Almeida G, Yeung B (2013) Fast-mover advantages: speed capabilities and entry into the emerging submarket of atlantic basin LNG. Strateg Manag J 34(13):1531–1550

Henisz WJ, Delios A (2001) Uncertainty, imitation, and plant location: Japanese multinational corporations, 1990–1996. Adm Sci Q 46(3):443–475

Isobe T, Makino S, Montgomery DB (2000) Resource commitment, entry timing, and market performance of foreign direct investments in emerging economies: the case of Japanese international joint ventures in China. Acad Manag J 43(3):468–484

Joshi YV, Reibstein DJ, Zhang ZJ (2009) Optimal entry timing in markets with social influence. Manag Sci 55(6):926–939

Kekre S, Srinivasan K (1990) Broader product line: A necessity to achieve success? Manag Sci 36(10):1216–1232

Ketchen DJ, Snow CC, Hoover VL (2004) Research on competitive dynamics: recent accomplishments and future challenges. J Manag 30(6):779–804

Klein KJ, Dansereau F, Hall RJ (1994) Levels issues in theory development, data collection, and analysis. Acad Manag Rev 19(2):195–229

Klepper S, Simons KL (2000) Dominance by birthright: entry of prior radio producers and competitive ramifications in the US television receiver industry. Strateg Manag J 21(10–11):997–1016

Klingebiel R, Joseph J (2016) Entry timing and innovation strategy in feature phones. Strateg Manag J 37(6):1002–1020

Klingebiel R, Rammer C (2014) Resource allocation strategy for innovation portfolio management. Strateg Manag J 35(2):246–268

Kraus S, Mitter C, Eggers F, Stieg P (2017) Drivers of internationalization success: a conjoint choice experiment on German SME managers. RMS 11(3):691–716

Kreft IG, De Leeuw J, Aiken LS (1995) The effect of different forms of centering in hierarchical linear models. Multivar Behav Res 30(1):1–21

Landwehr JR, Labroo AA, Herrmann A (2011) Gut liking for the ordinary: incorporating design fluency improves automobile sales forecasts. Market Sci 30(3):416–429

Lee GK (2008) Relevance of organizational capabilities and its dynamics: what to learn from entrants’ product portfolios about the determinants of entry timing. Strateg Manag J 29(12):1257–1280

Lévesque M, Minniti M, Shepherd D (2013) How late should johnny-come-lately come? Long Range Plan 46(4):369–386

Lieberman MB, Asaba S (2006) Why do firms imitate each other? Acad Manag Rev 31(2):366–385

Lieberman MB, Montgomery DB (1988) First-mover advantages. Strateg Manag J 9(S1):41–58

Lieberman MB, Montgomery DB (2013) Conundra and progress: research on entry order and performance. Long Range Plan 46(4):312–324

Liu Y, Cheng P, Zhao D (2018) New product launch actions and firm performance: the effects of breadth, complexity and heterogeneity. Chin Manag Stud 12(1):79–105

McCardle KF (1985) Information acquisition and the adoption of new technology. Manag Sci 31(11):1372–1389

McNamara GM, Haleblian JJ, Dykes BJ (2008) The performance implications of participating in an acquisition wave: early mover advantages, bandwagon effects, and the moderating influence of industry characteristics and acquirer tactics. Acad Manag J 51(1):113–130

Miller D, Friesen PH (1983) Strategy-making and environment: the third link. Strateg Manag J 4(3):221–235

Moeen M (2017) Entry into nascent industries: disentangling a firm’s capability portfolio at the time of investment versus market entry. Strateg Manag J 38(10):1986–2004

Murthi BPS, Srinivasan K, Kalyanaram G (1996) Controlling for observed and unobserved managerial skills in determining first-mover market share advantages. J Market Res 33:329–336

Narasimhan C, Zhang ZJ (2000) Market entry strategy under firm heterogeneity and asymmetric payoffs. Market Sci 19(4):313–327

Paul DL, Wooster RB (2008) Strategic investments by US firms in transition economies. J Int Bus Stud 39(2):249–266

Paulson Gjerde KA, Slotnick SA, Sobel MJ (2002) New product innovation with multiple features and technology constraints. Manag Sci 48(10):1268–1284

Porter ME (1998) Clusters and the new economics of competition. Harvard Bus Rev 76(6):77–90

Putsis WP, Bayus BL (2001) An empirical analysis of firms’ product line decisions. J Market Res 38(1):110–118

Robinson WT, Chiang J (2002) Product development strategies for established market pioneers, early followers, and late entrants. Strateg Manag J 23(9):855–866

Robinson WT, Fornell C, Sullivan M (1992) Are market pioneers intrinsically stronger than later entrants? Strateg Manag J 13(8):609–624

Rose EL, Ito K (2008) Competitive interactions: the international investment patterns of Japanese automobile manufacturers. J Int Bus Stud 39(5):864–879

Schmalensee R (1978) Entry deterrence in the ready-to-eat breakfast cereal industry. Bell J Econ 9:305–327

Schoenecker TS, Cooper AC (1998) The role of firm resources and organizational attributes in determining entry timing: a cross-industry study. Strateg Manag J 19:1127–1143

Standardization Administration of China (2001) Classification of power-driven vehicles and trailers. National Standard GB/T 15089-2001

Stock JH, Watson MW (2008) Heteroskedasticity-robust standard errors for fixed effects panel data regression. Econometrica 76(1):155–174

Sturgeon TJ, Van Biesebroeck J (2011) Global value chains in the automotive industry: An enhanced role for developing countries? Int J Technol Learn Innov Dev 4(1–3):181–205

Suarez FF, Lanzolla G (2007) The role of environmental dynamics in building a first mover advantage theory. Acad Manag Rev 32(2):377–392

Wang X, Yang Z (2008) Does country-of-origin matter in the relationship between brand personality and purchase intention in emerging economies? Evidence from China’s auto industry. Int Market Rev 25(4):458–474

Wu B, Knott AM (2006) Entrepreneurial risk and market entry. Manag Sci 52(9):1315–1330

Zachary MA, Gianiodis PT, Payne GT, Markman GD (2015) Entry timing enduring lessons and future directions. J Manag 41(5):1388–1415

Zettelmeyer F, Morton FS, Silva-Risso J (2006) How the Internet lowers prices: evidence from matched survey and automobile transaction data. J Mark Res 43(2):168–181

Titel: The role of product line breadth, product pre-entry experience, and market uncertainty in explaining followers’ speed of feature entry
verfasst von: Zhe OuYang
Peng Cheng
Yang Liu
Publikationsdatum: 08.02.2019
Verlag: Springer Berlin Heidelberg
Erschienen in: Review of Managerial Science / Ausgabe 6/2020
Print ISSN: 1863-6683
Elektronische ISSN: 1863-6691
DOI: https://doi.org/10.1007/s11846-019-00328-5

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 6/2020

Affiliative and aggressive humor in leadership and their effects on employee voice: a serial mediation model

Effects of task and work responsibilities idiosyncratic deals on perceived insider status and the moderating roles of perceived overall justice and coworker support

Effects of supply chain practices, integration and closed-loop supply chain activities on cost-containment of biodiesel

Do board characteristics drive firm performance? An international perspective

Beyond the “good” and “evil” of stability values in organizational culture for managerial innovation: the crucial role of management controls

Exploring the impact of ethical leadership on job satisfaction and organizational commitment in public sector organizations: the mediating role of psychological empowerment

Premium Partner