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Performance implications of core and complementary pre-entry experience: The role of consumer heterogeneity in mobile telephony

Eggers Jp, Michal Grajek and Tobias Kretschmer
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Eggers Jp: NYU Stern School of Business

ESMT Research Working Papers from ESMT European School of Management and Technology

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.

Keywords: pre-entry experience; mobile telecommunications; consumer segments; complementary assets; core technical knowledge (search for similar items in EconPapers)
JEL-codes: C51 L10 O33 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2011-03-30, Revised 2012-05-29
New Economics Papers: this item is included in nep-hme, nep-ind and nep-mkt
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Downloads: (external link) Revised version, 2012 (application/pdf)

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