First-Mover Advantage: A Synthesis, Conceptual Framework, and Research Propositions

TLDR

Numerous conceptual and empirical studies posit that first movers achieve long‑term competitive advantages by establishing a systematic direct relationship between entry order and market share. The study presents a broadened perspective that acknowledges the complexity of first‑mover advantage and offers several research propositions for marketing theory and practice. A conceptual framework is proposed that identifies factors underlying first‑mover advantage and product‑market contingencies that moderate the relationship between entry order and competitive advantage. An objective assessment of the literature indicates that the presumed systematic link between first‑mover status and market share is not universally valid and must be qualified.

Abstract

Numerous conceptual and empirical studies advance the notion that first movers achieve long-term competitive advantages. These studies purport to demonstrate the presence of a systematic direct relationship between order of entry for products, brands, or businesses and market share. However, an objective assessment of the literature suggests that this view must be qualified. A broadened perspective is presented that highlights the complexity of this phenomenon and suggests that first-mover status may or may not produce sustainable advantages because of a multiplicity of controllable and uncontrollable forces. A conceptual framework identifying factors that underlie first-mover advantage and product-market contingencies that moderate the order of entry-competitive advantage relationship is proffered. Several research propositions relevant for marketing theory and practice are presented.