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Introduction

The first firm to enter the market for specific products or services, is commonly believed to accumulate a long-term competitive advantages. On the average, the first movers usually have high market shares than their early followers and turn have higher market share compared to the later entries (Miller, William, and Robert, 1989). On the contrary, if a late mover uses product/strategy innovation, it will have a chance to overtake the pioneer if the first mover makes mistakes (Carpenter and Nakamoto, 1989; Shankar, Carpenter, and Krisnamurthi, 1998).

Definitions

Order of entry is defined as the first time a business enters the market. The pioneer is categorized as a business that develops/creates products or services for the market as well as the one that introduces new technology, process, skills, and resources to the market.Early follower as the business that develops/creates the products or services after the pioneer firm.

Business Performance

This research is concerned with obtaining (return of investment) ROI, and market position (Market share) in order to measure business performance.

Statistical Methods

To test the influence of the moderator variables (marketing strategies and market place factors) on order of entry and business performance, a hierarchical regression analysis (HRA).

Results

The finding reveled that there are significant differences between the pioneers and early followers in achieving market share.

The interaction effect between order of entry and product quality is also found significant. Partial regression showed that product quality strategy is significant.Hence, hypothesis (the extent of product quality positively moderates the relationship between order of entry and market share) is accepted.

The interaction effect between order of entry and product price is also found significant. Partial regression showed that product quality strategy is significant (.003).Thus, Hypotheses (The extent of price positively moderates the relationship between order of entry and market share) is accepted.

The interaction effect between order of entry and product cost is also found significant. Partial regression coefficient changes slightly about 0.007 and significant-t of .034.Thus, hypothesis (extent of cost positively moderates the relationship between order of entry and market share) is accepted.

The interaction effect between order of entry and promotion strategy is also found significant. Partial regression coefficient is .00687.The hypothesis (the extent of promotion positively moderates the relationship between order of entry and market share) is accepted.

The interaction effect between order of entry and breadth of product line strategy is found significant. Partial regression coefficient is .00961. The hypothesis (the extent of breadth of product line positively moderates the relationship between order of entry and market share) is accepted.

The interaction effect between order of entry and R&D strategy is found significant. Partial regression coefficient is 0... Thus, hypothesis (the extent of R&D positively moderates the relationship between order of entry and market share) is accepted.

References

Green, G.H., Barclay, D.W. & Ryans, A.B. (1995). Entry Strategy and long Term Performance: Conceptualization and Empirical Examination. Journal of Marketing research, Chicago, 35 (February), 54-70.

Kardes, F.R. & Kalyanaram, G. (1992). Order of Entry Effect on Consumer Memory and judgment: an Information Integration Prepective. Journal of Marketingb research, XXIX (August), 343-357.

Murthi, B.P.S. & Kannan, S. (1996). Controlling for Observed and Unobserved Managerial Skills in Determining First Mover Market share Advantage. Journal of Marketing research, August, Vol.33, 329-337.

Robinson, W.T. & Huff, L.C. (1994). The Impact of Lead Time and Years of Competitive Rivalry on Pioneer Market Share Advantages. Management Science, 40 (October), 1370-1377.

Robinson W.T., Gurumurthy, K.& Urban L.G. (1994). First Mover Advantages From Pioneering New Markets: a survey Empirical Evidence. Review of Industrial Organization, (February) 1-23.

About Writer:

1. Lecturer from LP3I Polytechnic, North Sumatra- Indonesia

2. Lecturer from Muhammadyah University of North Sumatra- Indonesia