Followers' entry timing: evidence from the Spanish banking sector after deregulation

Much of the literature dedicated to the analysis of entry timing decisions has been devoted to the study of their consequences in terms of performance. However, only a limited amount of effort has been dedicated to analyzing the factors that determine these decisions. In addition, previous papers have centered their efforts on the product dimension, paying no attention to entry into new geographical markets. This paper departs from previous works in this respect and extends the entry timing literature through a consideration of the geographical side of entry. Our analysis shows that organizational size, organizational competence, and organizational experience appear as key factors when explaining the pattern of geographic diversification. Our results also indicate that diversification takes place sequentially, first proceeding to closer locations, then occupying markets further from the origin. Copyright © 2002 John Wiley & Sons, Ltd.     

Use of supplier-customer relationships by SMEs to enter foreign markets

Small and medium size enterprises (SMEs) that have gained experience in a supplier-customer relationship with multinational companies in the domestic market may be able to leverage that relationship to recruit new customers abroad. Is it possible to internationalize such supplier-customer relationships is the research question addressed in this paper. We tested five hypotheses, derived from the internationalization and interorganizational literature, using non-parametric tests and regression analysis with data provided by customers and suppliers in the computer industry. We discover that while customers initiate the first supplier-customer relationship, additional relationships, formed with the objective of internationalizing the firm are often initiated by SME itself, a new finding.     

Doomed from the start: what is the value of selecting a future dominant design?

This study investigates how important it is for a firm to select what turns out to be a dominant design in a technology‐driven industry. Using the personal computer industry as a case study, this research shows that firms are not doomed when their entry design choices turn out to be ‘wrong.’ For early entrants, we found that switching to the dominant design is associated with increased chances of survival and market share. Contrary to our expectations, we found that even later entrants that switched to the dominant design also enjoyed higher survival rates and greater market position. Copyright © 1999 John Wiley & Sons, Ltd.     

Are market pioneers intrinsically stronger than later entrants?

Are market pioneers more successful because they started with superior skills and resources? The absolute pioneer advantage hypothesis is that because market pioneering is desirable, firms with superior skills and resources naturally choose to pioneer new markets. The comparative advantage hypothesis is that market evolution changes success requirements. Market pioneer skills and resources differ from, but are not superior to later entrants. Empirical results across 171 diversification entrants tend to support the comparative advantage hypothesis. Skill and resource profiles are provided for market pioneers, early followers, and late entrants.     

Entry Patterns in the Southwest Airlines Route System

We estimate a model of city-pair entry for Southwest Airlines using data from 1990 to 2000. In addition to quantifying the market characteristics which have influenced Southwests entry decisions, we find evidence that Southwests entry strategies have changed significantly throughout the decade. Based on our models estimates, we provide an estimate of the foregone fare savings resulting from the Wright and Shelby Amendments. Finally, we identify those markets that are the most likely for future non-stop entry and suggest which network carriers are most vulnerable to future Southwest expansion.     

SURVIVAL OF BUSINESSES USING COLLABORATIVE RELATIONSHIPS TO COMMERCIALIZE COMPLEX GOODS

Authors with many theoretical and managerial perspectives argue that businesses commercializing technologically complex goods benefit when they collaborate closely with other businesses. Collaboration is viewed as a means for businesses to overcome competency limitations and to achieve the close configuration of components required for complex goods. We predict that collaborative relationships often assist businesses to produce complex goods, but that the relationships might also cause problems for the collaborating businesses. We find that firms using development-oriented and marketing-oriented collaborative relationships in the hospital software systems industry are less likely to shut down than businesses that follow independent approaches when the environment changes gradually, but businesses using collaborative relationships are sometimes susceptible to being acquired by other firms. Following a sudden environmental shock, businesses with collaborative relationships for activities central to the shock became more likely to shut down, while businesses with collaborative relationships for activities outside the focus of the shock became more likely to survive. The study critically evaluates and tests the widely stated but little-tested argument that interfirm collaboration is usually beneficial. The results address the issue of whether organizational choices affect comparative business performance.     

Precarious collaboration: Business survival after partners shut down or form new partnerships

Businesses often benefit by forming alliances with other firms but risk becoming dependent on their partners. We discuss two situations in which dependence may create serious problems: first, if a partner shuts down and. second, if a partner forms a relationship with a new partner. We examine collaborative relationships formed by businesses operating in the U.S. hospital software systems industry during the 1961–91 period. We find that businesses faced increased risk of dissolution if they did not form new partnerships after partners shut down or formed collaborative relationships with new partners. The results have implications for developing an evolutionary theory of business strategy and performance. Our approach implies that the performance of a focal business often depends on how the strategies of its business partners evolve over time. An evolutionary theory of strategy must incorporate key characteristics of actions and relationships throughout a web of business partnerships. The dual nature of interfirm relationships, which both help a business survive at one time and inhibit its ability to adapt at another, helps explain why so many successful businesses fail when their environments change.     

International research teams as analysts of industrial business networks

This paper analyzes case studies in the context of industrial business networks, and in particular from the IMP (Industrial Marketing and Purchasing Group) perspective. Two features have been prominent in this research tradition: collaboration in international research teams and interest in business between international customers and their suppliers. Still, researchers seldom discuss the challenges with the international aspects of the research team (as the subject of study) or of the business relations (as the object of study). This paper shows the complications of analyzing international business relations, namely, relations that cross national boundaries, and investigates how an international research team can tackle the challenges of international business network studies. The key contributions are, firstly, to indicate the lack of attention on the methodological requirements and opportunities that the international features create for the analysis of business networks and, secondly, to investigate how collaboration in an international research team may advance the analysis of both international industrial marketing relations and broader business networks.     

跨国公司在华投资市场导向与绩效关系实证研究

以往文献多是从研发投入、技术转让、知识产权保护导致交易费用不同的角度研究市场导向与外资企业绩效之间的关系,本文则从外资企业功能定位、资源要求、市场机会、风险暴露以及不同动机的成本节约差异入手研究外资的市场导向对绩效的影响。相对出口导向型外资企业而言,市场开拓型外资企业在价值创造中承担了更多的功能、投入更多的资源、面临的市场机会更多、风险更小,并且成本节约更大,这些因素使其绩效好于出口导向型外资企业的绩效。我们通过江苏省苏州地区4026家生产性外资企业2003-2007年数据进行实证研究支持了这一结论。同时,实证研究发现市场导向与绩效之间的关系受到进入方式的调节作用,在合资与独资两种不同进入方式下,市场导向与绩效之间的关系在方向上表现不一致,而且在强度上也存在很大差别,合资的市场开拓型在华子公司的绩效要好于独资的出口导向型在华子公司的绩效。基于该研究结论我们提出相应的管理启示和政策建议。     

Product development strategies for established market pioneers,early followers,and late entrants

At the time of entry, market pioneers are known for emphasizing major product development projects. After being in the market for many years, however, do market pioneers, early followers, and late entrants maintain different product development strategies? Data from 2273 established manufacturing businesses reveal that market pioneers have the highest probability of engaging in product development, which covers product R&D spending as well as new product sales. Even so, market pioneers and early followers tend to emphasize minor projects, such as product improvements and line extensions. Late entrants are less likely to engage in product development, but those that do tend to emphasize major development efforts. Copyright © 2002 John Wiley & Sons, Ltd.