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| Author: | King, A. A. Tucci, C. L. |
| Title: | Incumbent Entry into New Market Niches: The Role of Experience and Managerial Choice in the Creation of Dynamic Capabilities |
| Journal: | Management Science
2002 : FEB, VOL. 48:2, p. 171-186 |
| Index terms: | MARKETING MARKETING STRATEGY MANAGERIAL ACTIVITIES MANAGERS MARKETING MANAGEMENT |
| Language: | eng |
| Abstract: | Increasingly, technological innovation creates markets for new products and services. To survive, firms must respond to these new markets. The authors consider how firms do develop the capabilities necessary to succeed in such changing conditions. In this paper, the authors explore these issues by investigating entry patterns in the disk-drive industry. The authors investigate the effect of experience in existing markets and experience with previous market entry. The authors find that experience in previous markets increased the probability that a firm would enter a new market. The authors show that this experience had greater value if the firm entered the new market. The authors infer that managers chose to enter these markets to obtain this increase in value. |
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