۱- Introduction

۲- Literature review

۳- Review of IB entry timing research

۴- Meta-analytic foundation

۵- Results

۶- Theoretical and managerial implications

۷- Avenues for future research

۸- Conclusion

References

Abstract

In this meta-analytic review, we examine the entry timing-firm performance relationship as it has been studied in international business research. In addition, we present several moderating factors that strengthen or weaken that relationship. We find that early entry bears financial advantages in international markets, but those advantages depend on country of entry and origin, industry context, performance measurement, type of entry and time period. We conclude with a discussion of avenues for future research.

Introduction

Almost thirty years ago, Lieberman and Montgomery (1988) developed the most prevalent framework to explain the entry timingfirm performance relationship. Their first mover advantages (FMA) framework argues that a firm that enters a given market before its rivals gains a competitive advantage (Lieberman and Montgomery, 1988). Usually called the first mover or pioneer, this firm relies on the mechanisms of technological leadership, market preemption and switching costs to outperform later entrants in the market. Although scholars initially tested entry timing in domestic contexts (Carpenter and Nakamoto, 1989; Lambkin, 1988; Robinson, 1988; Robinson and Fornell, 1985), entry timing research eventually progressed to and gained attention in international business (IB) environments (Johnson and Tellis, 2008; Mascarenhas, 1992; Pan et al., 1999; Song et al., 1999). Yet, the empirical results of the entry timing-firm performance relationship within the IB domain have been rather mixed with some authors finding that early entry benefits the firm (Isobe et al., 2000; Mascarenhas, 1992; Pan et al., 1999; Tsoua et al., 2009) while others find little or no benefit of early entry (Delios and Makino, 2003; Nehrt, 1996). One way to address this discrepancy and provide a thorough and comprehensive assessment of the entry timing-firm performance relationship is to conduct a meta-analytic review. Thus, in this meta-analytic review, we aim to answer the following question: do early entry advantages exist in international markets? A second objective of our paper is to identify key moderating conditions to the relationship between entry timing and firm performance. This will allow us to specify when and where FMA are strengthened, weakened or nonexistent in international markets. To conduct our review, we performed a comprehensive search of business journals and unpublished works for papers testing the entry timing-firm performance relationship in the IB domain.