Early mover advantage in e-commerce platforms with low entry barriers: The role of customer relationship management capabilities

Abstract

This research investigates whether early mover advantage (EMA) exists among entrepreneurial e-tailers operating on third-party e-commerce platforms. Contrary to traditional wisdom, the current research hypothesizes that e-tailers may enjoy early mover advantages because of the consumer demand inertia amplified by the nature of the Internet and the system design characteristics of e-commerce platforms. We also argue that customer relationship management capabilities help enhance early mover advantages in an online setting. We employ panel data on 7309 e-tailers to perform analyses and find empirical evidence that strongly supports the abovementioned hypotheses.