Document Type

Journal Article

Department/Unit

Department of Management

Title

The timing of market entry and firm performance: A perspective of institutional theory

Language

English

Abstract

Integrating literature from institutional theory with that from market entry research, we study the effects of a firm's early marketing entry on other firms' behaviors and performances. In addition, we also consider the moderating effect of other institutional factors, such as the firms' home-country culture and institutional environments in an emerging economy. Based on a review of all the relevant research, we develop a theoretical model with testable hypotheses. With empirical data from multi-national enterprises (MNEs) competing in China's insurance-service market, we test the hypotheses. Our data analyses show evidence that, other things being equal, early market entry can cause institutional imitation, in terms of market diversification, among imitators. At the same time, the imitation can be moderated by the home-country culture of the MNEs. In addition, the imitation of early market entry firms has some significant effects on the performance of imitators, including less deviation from the industry norm and better financial performance. © 2014 Elsevier Inc.

Keywords

China, Early market entry, Institutional theory, Performance

Publication Date

2014

Source Publication Title

Industrial Marketing Management

Volume

43

Issue

5

Start Page

754

End Page

759

Publisher

Elsevier

DOI

10.1016/j.indmarman.2014.04.007

ISSN (print)

00198501

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