Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/96568
Authors: 
Eggers, JP
Grajek, Michał
Kretschmer, Tobias
Year of Publication: 
2012
Series/Report no.: 
ESMT Working Paper 11-03 (R2)
Abstract: 
We study how two distinct types of pre-entry experience – core technological experience and market-based complementary experience – affect post-entry performance in a new industry. We focus on the fit between capabilities generated through pre-entry experience and the preferences of heterogeneous consumer segments. Specifically, we suggest that firms with pre-entry experience in the focal technology will attract more valuable consumers, but as these consumers typically make adoption decisions early the firm must enter early to benefit. Conversely, firms with pre-entry experience in the focal market will attract a larger share of less valuable consumers regardless of entry timing. Our empirical analysis of the global 2G mobile telecommunications industry supports our theory and provides important insights for research on experience and entry dynamics in high-technology industries.
Subjects: 
pre-entry experience
mobile telecommunications
consumer segments
complementary assets
core technical knowledge
JEL: 
C51
L10
O33
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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