Measuring the continuation effects of market order entry: A dynamic model

Abstract

The advantages of first movers are well-known; it is also known that second movers can accumulate resources and gain competitive advantage via catching-up strategies. We investigate the relationship between business performance and market-entry time among Taiwanese semiconductor companies during the period 2008 to 2012 in order to provide the industry with useful guidelines for business strategies. We also investigate productivity change among Taiwanese semiconductor companies through the combined use of Malmquist productivity index and bootstrap. Our results show that the second movers presented a superior performance in productivity change, with an average improvement of 27.5%, indicating good continuation effects. © 2020 John Wiley & Sons, Ltd.