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The role of product line breadth, product pre-entry experience, and market uncertainty in explaining followers’ speed of feature entry

  • Zhe OuYang
  • Peng Cheng
  • Yang LiuEmail author
Original Paper
  • 10 Downloads

Abstract

Previous entry timing studies have reinforced the timing wisdom by primarily focusing on new markets. This inductive study investigates how firms make decisions about the entry speed of new product features to a well-developed market using a classification of two dimensions of entry speed, namely internal and external. The analysis uses empirical data from 565 new product entry events by followers (not first movers) in the Chinese auto industry from 2011 to 2013 to explore the impacts of the follower’s product line breadth and product pre-entry experience on its internal and external feature-entry speed. We find that both product line breadth and product pre-entry experience can accelerate the speed of internal entry while only the firm product line breadth deters the external entry. Additionally, market-specific uncertainty moderates the relationship between breadth, experience and entry speed decisions. Greater market uncertainty tends to boost the internal and external entry speed than that of lower uncertainty.

Keywords

Entry speed Product line breadth Pre-entry experience Market uncertainty Auto industry 

Mathematics Subject Classification

J05 

Notes

Acknowledgements

This research was funded by the National Key R&D Program of China (2016YFC0802500), National Natural Science Foundation of China grants (71702180, 71828012), Social Science Foundation of Jiangsu Grants (18GLC001), Humanity and Social Science Youth foundation of Ministry of Education of China (18YJC630106), and China Postdoctoral Science Foundation Funded Project (2018M642546).

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Department of Business AdministrationNanjing University of Finance and EconomicsNanjingPeople’s Republic of China
  2. 2.Department of Marketing and Logistics ManagementNanjing University of Finance and EconomicsNanjingPeople’s Republic of China
  3. 3.School of ManagementUniversity of Science and Technology of ChinaHefeiPeople’s Republic of China

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