First Come, First Served: How Market and Non-Market Actions Influence Pioneer Market Share Articles uri icon

publication date

  • November 2009

start page

  • 1139

end page

  • 1145


  • 11


  • 62

International Standard Serial Number (ISSN)

  • 0148-2963

Electronic International Standard Serial Number (EISSN)

  • 1873-7978


  • This study examines the relationship between the erosion of first-mover advantages and the competitive behavior of pioneer and follower firms in a service industry--in this case, the European mobile telecommunications industry. The research analyzes the role of market actions related to innovation, pricing and promotion, and non-market actions related to judicial issues. The study finds that first movers enjoy a sustainable market share advantage in this service industry, but that this advantage depends on the type of actions taken by pioneers and followers. Specifically, followers that take more market actions than the pioneer are not able to erode the first-mover's advantage. However, followers taking more non-market actions - such as litigation and complaints - are successful at taking market share from the pioneer.