Order of market entry, competitive strategy, and financial performance

Abstract

We examine the relationship between order of market entry, competitive strategy, and financial performance, using a sample of firms in concentrated, mature industries manufacturing heterogeneous products sold in domestic markets. The research discusses the conceptualization of order of market entry and competitive strategy, arguing for the value of investigating both constructs simultaneously when evaluating the determinants of a business unit's financial performance. The results indicate that there is a significant relationship between entry order and competitive strategy. Furthermore, these relationships have a significant influence on a firm's financial performance.