The Role of Environmental Dynamics in Building a First Mover Advantage Theory
Open accessAbstract
We advance first mover advantage (FMA) theory by examining how the pace of market evolution and technology evolution potentially enables or disables FMA. Integrating several streams of literature, we elaborate on the interplay among these two environmental (macro) conditions and the “isolating mechanisms” that underpin FMA. We model these dynamics to help researchers negotiate the current debate, arising from conflicting empirical evidence, on the conditions necessary for FMA to exist.
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Rapidly growing market demand allows late entrants to acquire customers and expand their installed base on a platform without directly competing with existing complementors.
“Rapidly growing market demand also allows late entrants to acquire customers and expand their installed base on a platform without directly competing with the existing complementors (Suarez and Lanzolla 2007).”
From Smart Timing for Smart Products? Complementor Multihoming in Nascent Platform Markets (2026) · cites this paper as Suarez and Lanzolla 2007
Complementors that enter a platform market at an early stage are likely to face a high risk of failure.
“Following the extant literature on entry timing in fast-cycle industries (Bohlmann et al. 2002;Suarez and Lanzolla 2007), complementors that enter a platform market at an early stage are likely to face a high risk of failure.”
From Smart Timing for Smart Products? Complementor Multihoming in Nascent Platform Markets (2026) · cites this paper as Suarez and Lanzolla 2007
Cites
Technological paradigms and technological trajectories
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Core capabilities and core rigidities: A paradox in managing new product development
Leonard-Barton, D. (1992) · Strategic Management Journal · doi:10.1002/smj.4250131009 · Cited by 6,477 · see citing works
Strategic management of small firms in hostile and benign environments
Covin, J. G., & Slevin, D. P. (1989) · Strategic Management Journal · doi:10.1002/smj.4250100107 · Cited by 5,981 · see citing works
A contingent resource-based view of proactive corporate environmental strategy
Aragón-Correa, J. A., & Sharma, S. (2003) · Academy of Management Review · doi:10.5465/amr.2003.8925233 · Cited by 2,362 · see citing works
Bohlmann, J. D., Golder, P. N., & Mitra, D. (2002) · Management Science · doi:10.1287/mnsc.48.9.1175.175 · Cited by 180 · cited 12× · see citing works
“Because abrupt market and technology dynamics have a high potential to undermine the effectiveness of isolating mechanisms, early entrants find FMA based on technology leadership more difficult to achieve; conversely, later entrants find that higher-quality products, or innovative solutions that can enable powerful vi…”
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Liminal movement by digital platform‐based sharing economy ventures: The case of Uber Technologies
Garud, R., Kumaraswamy, A., Roberts, A., & Xu, L. (2022) · Strategic Management Journal · doi:10.1002/smj.3148 · Cited by 274 · see citing works
Rietveld, J., Ploog, J. N., & Nieborg, D. B. (2020) · Academy of Management Discoveries · doi:10.5465/amd.2019.0064 · Cited by 151 · see citing works
Holistic approach to human resources and organizational acceleration
Pluta, A., & Rudawska, A. (2016) · Journal of Organizational Change Management · doi:10.1108/jocm-11-2014-0210 · Cited by 49 · see citing works
Smart Timing for Smart Products? Complementor Multihoming in Nascent Platform Markets
Aydin Ozden, S., Suarez, F. F., Libaers, D., & Bart, Y. (2026) · Journal of Product Innovation Management · doi:10.1111/jpim.70005 · Cited by 3 · see citing works
Self-citation
- Authors
- Suarez, F. F., & Lanzolla, G.
- Affiliations
- Boston University
- City, University of London (GB)
- ORCID
- Lanzolla, Gianvito
- Venue
- Academy of Management Review
- Publisher
- Academy of Management
- Published
- 2007-04
- Volume
- 32
- Issue
- 2
- Pages
- 377-392
- ISSN
- 0363-7425 (ISSN-L)
- 1930-3807
- OpenAlex
- W2114469794
- Cited by
- 438
- References
- 5
- Citations by year
- 2026: 6 · 2025: 32 · 2024: 20 · 2023: 19 · 2022: 31 · 2021: 19 · 2020: 26 · 2019: 33 · 2018: 24 · 2017: 26 · 2016: 20 · 2015: 20 · 2014: 26 · 2013: 28 · 2012: 21
- FWCI
- 61.04
- Type
- journal article
- Language
- en
- Open access
- green
- papers.ssrn.com
- Locations
- Academy of Management Review (publishedVersion)
- SSRN Electronic Journal (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Firm Innovation and Growth
- Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategies and Innovation
- Keywords
- first-mover advantage, market evolution, technological evolution, environmental dynamics, reproductive barriers, market leadership, competitive advantage
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