Research notes and communications first‐mover effects in multiple dynamic markets

A study of first‐mover effects in semi‐submersible oil‐drilling suggests that first‐entrants in international markets maintain higher market share after controlling for market localization and life cycle. Examining only surviving entrants at a point in time inflates this pioneering‐market share relationship. Pioneering has an inter‐market effect on market share, greater than the intra‐market effect. Multinational firms may use market pioneering to resist localization pressures and enhance survival in foreign markets. The study suggests the importance of careful first‐mover identification and market definition, a wider examination of first‐mover effects over multiple markets, and control for measurement timing.