Leveraging the first mover advantage: proprietary technologies versus costleadership

The main objective of this research is to develop the ‘pioneer effect’ view of a firm’s market share. It provides and tests a model explaining that the efficiency of firms’ strategic choices after entry is linked with the order of entry to gain market share. On a cross-sectional data set of French companies in the manufacturing industry, the results support the persistence of a first mover advantage among survivors. Furthermore, it is shown that the development of proprietary technologies, considered as the capability to protect knowledge in-house from competition, can have a leverage effect on the first mover advantage. Finally, if cost leadership is a relevant strategy to gain market share, it appears less profitable for pioneers and early followers than for late entrants