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Decomposing First Mover Advantages in the Mobile Telecommunications Industry

Author

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  • JP Eggers
  • Michal Grajek
  • Tobias Kretschmer

Abstract

We study first-mover advantages and organizational pre-entry experience in a market with highly heterogeneous consumers – the global mobile telecoms industry. Specifically, we consider the fact that early consumers will be different from later ones. We suggest that early entrants will attract higher-value consumers, which results in first-mover advantages. This effect will be enhanced if these firms have acquired prior technical experience. Conversely, later, mass-market adopters are attracted by established (domestic) brand names. Our empirical results from the global telecommunications industry support our assertions and provide importation insight for the study of first-mover advantages in high-technology industries.

Suggested Citation

  • JP Eggers & Michal Grajek & Tobias Kretschmer, 2011. "Decomposing First Mover Advantages in the Mobile Telecommunications Industry," DRUID Working Papers 11-09, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    • Handle: RePEc:aal:abbswp:11-09
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    Citations

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    Cited by:

    1. Muck, Johannes & Heimeshoff, Ulrich, 2012. "First mover advantages in mobile telecommunications: Evidence from OECD countries," DICE Discussion Papers 71, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    2. Asimakopoulos, Grigorios & Whalley, Jason, 2017. "Market leadership, technological progress and relative performance in the mobile telecommunications industry," Technological Forecasting and Social Change, Elsevier, vol. 123(C), pages 57-67.
    3. Kjetil Andersson & Øystein Foros & Bjørn Hansen, 2016. "Empirical Evidence on the Relationship between Mobile Termination Rates and Firms' Profits," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(1), pages 129-149, January.
    4. Kuchinke, Björn A. & Vidal, Miguel, 2016. "Exclusionary strategies and the rise of winner-takes-it-all markets on the Internet," Telecommunications Policy, Elsevier, vol. 40(6), pages 582-592.

    More about this item

    Keywords

    First-mover advantage; Mobile telecommunications; Consumer-centric; Pre-entry experience; Firm pre-entry experience;
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