First-mover advantage and competitive dynamics: a study in the automotive industry

Abstract

Competitive dynamics and previous studies have showed that firms that enter as first in a specific market tend to obtain a dominant position in comparison to the later movers. Researchers have argued on finding a suitable definition of first-mover since an excessively loose definition could be applicable for too many firms making it difficult to properly analyse them. Thus, it is relevant to analyse how car manufacturers are behaving in the automotive industry and if there is still a relevant first-mover advantage or not. Prior studies have analysed first-mover advantage in different industries with the selection of different criteria. The following study will analyse the above-mentioned industry taking into consideration electrification, autonomous driving, connectivity and mobility as a service. This research aims at analysing first-mover advantage and competitive dynamics of the automotive industry under the light of the new radical technologies that are revolutionizing the competitive scenario. The empirical investigation was based on a multiple case study in order to capture similarities and differences among automotive producers of different countries. Primary data was collected through semi-structured interviews with managers of the companies while secondary data through annual reports and analysis of service providers. Furthermore, secondary data was collected in order to increase the credibility of the study by triangulating different sources of data. Findings show that first-mover advantage is considered to be a relevant success factor in the automotive competitive scenario. Notwithstanding, managerial perceptions of pioneering behaviours change depending on the technology considered. The main influential factors of pioneering have been identified in internal factors, particularly the internal innovation orientation. External factors are considered differently depending on strategic position: boosting agents for pioneers and starting agents for followers. Additional significant findings interest the competitive dynamics of the industry with a specific focus on the relevance of coopetition and future cooperation.