Sources of Market Pioneer Advantages in Consumer Goods Industries

Robinson, William T.; Fornell, Claes

doi:10.1177/002224378502200306

Cited by 346 publications

(180 citation statements)

References 14 publications

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“…Multiple studies investigate the impact of order of entry on a brand's market share and sales (e.g., Kalyanaram et al 1995;Robinson and Fornell 1985;Urban et al 1986). Late entrants grow faster but achieve lower market share levels (Kalyanaram and Urban 1992).…”

Section: Order Of Entrymentioning

confidence: 99%

“…In the marketing literature, there has been extensive attention to the role of order of entry and quality with regard to (new product) performance (Gielens and Dekimpe 2001;Kalyanaram and Urban 1992;Kalyanaraman and Wittink 1994;Robinson and Fornell 1985;Shankar et al 1998). An important debate addresses the question whether first movers really have a competitive advantage as is often attributed to them (Golder and Tellis 1993;Kornelis et al 2008;Zhang and Narasimhan 2000).…”

Section: Introductionmentioning

confidence: 99%

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Drivers of peak sales for pharmaceutical brands

2010

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Section: Order Of Entrymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Drivers of peak sales for pharmaceutical brands

2010

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“…A lead market gives domestic firms a head start in terms of learning, economies-of-scale, quality improvements, setting up distribution systems, access to supplies, brand loyalty and international reputation, product line differentiation and long-term market share (Robinson and Fornell 1985) for a particular innovation design. Lead markets ''catalyze'' (Porter 1990, p. 614) the international success of a domestic firm's innovation activities.…”

Section: Resultsmentioning

confidence: 99%

Lead markets, innovation differentials and growth

Beise

2005

IEEP

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This article suggests that the specialization of countries in international trade is determined by the lead-lag market pattern of national markets. Many internationally successful innovations have been adopted first in one country while other countries initially either preferred other designs or an established product. A model for the international diffusion of innovations is presented in which nationally preferred innovation designs compete to become a globally dominant design. In this model, there are country-specific market attributes that increase the likelihood that the choice a country makes among alternative technologies is followed around the world. It is argued that technological knowledge gaps are not the origin of an international competitive advantage. Instead, a country gains a competitive advantage because a specific innovation design was adopted earlier than in any other country. This gives local firms a head start in producing, gathering marketing intelligence and securing the property rights of a globally successful innovation. In countries with lag market characteristics, domestic innovations are less likely to get adopted worldwide. Lag markets often switch from a domestic innovation design to a foreign innovation design, which increases imports. The lead-lag market explanation of trade specialization has implications for national policies. In this model domestic innovations do not always foster exports; idiosyncratic innovations induced by lag market contexts can hamper the export chances of local firms and in the end lead to an increase in imports. It is suggested that in order to increase exports, national policies have to distinguish between a domestic lead and lag market context in each industry. While in a lead market context, traditional policy instruments that enhance the rate of innovations are effective, in a lag market situation national follower strategies are more appropriate. Copyright Springer-Verlag Berlin Heidelberg 2005Competing technologies, International diffusion of innovation, O33, O38,

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“…We show that when the profits from new products are not realized instantaneously, the incumbents may have more incentives than potential entrants to invest in the development of drastic innovations. There may be however, advantages accruing to firms due to their being first to market in the order of entry (Robinson and Fornell 1985). Ofek and Sarvary (2003) examine a firm's advantage in terms of reputation and dynamic capabilities due to its position in the industry as an incumbent or entrant.…”

Section: Literature Reviewmentioning

confidence: 99%