Late Entrants Research Articles

Stock Price Manipulation: The Role of Intermediaries

We model a scenario in which there are three types of investors: fundamentalists, speculators, and trend-followers and an intermediary who cares about his reputation. Fundamentalists are rational investors with long horizons who are interested in the dividend stream. Speculators are rational investors who have short horizons and are interested in profiting from short-term price movements or capital gains. Trend-followers are behavioral investors who extrapolate price trends, and, consequently, are late entrants in the market. We show that an informed intermediary (broker) can manipulate demand (consequently stock price) without losing his reputation when there is information asymmetry. We also show that there is a trade-off between broker level competition for reputation and market liquidity. Broker level competition checks manipulation, but it adversely affects market liquidity.

Methamphetaminkonsum in Mitteldeutschland: Eine qualitative Studie zu Konsumentengruppen und -motiven aus Expertensicht

Methamphetamine is one of the most consumed illegal drugs worldwide. In Germany, Methamphetamine shows the highest rates of growth in comparison to other illegal substances in recent years. Particularly Central Germany has been struck by a high rise in consumption. International studies indicate that there is no specific group of people that can be identified as Methamphetamine users. Different consumption patterns in terms of Methamphetamine use can be identified within various social groups. This qualitative study will explore different consumer groups among methamphetamine users, their motives, and how they differ by drug addiction type. The empirical data collection was carried out in a consecutive 2-stage process. Initially, 39 semi-structured individual interviews with experts from different clinical areas were carried out about their experience and perspectives on Methamphetamine use. The results of the individual interviews were subsequently discussed and validated within 2 interdisciplinary focus groups. All interviews and focus groups were digitally recorded, transcribed and analyzed according to the method of Meuser & Nagel. Altogether, 3 consumer groups were identified: (1) Young parents, women and pregnant women, (2) young drug users and early adapters and (3) older drug users or late entrants. The guiding motive in terms of Methamphetamine use described by the experts was improved efficiency. Further motives are for instance overcoming stressful situations, enablement and improvement of sexual experiences, self-esteem enhancement, coping with crisis or trauma, curiosity and drug use as leisure time activity. The results in terms of consumer groups and consumption motives are consistent with international findings and we were able to verify and expand them for Central Germany. The outcomes illustrated that there are different consumer groups among methamphetamine users that differ from consumer groups of other drug addiction types. Treatment and consultation have to anticipate these challenges and adapt their strategies to different needs. Finally, further improvement of accessibility for those affected persons is an imperative to the German healthcare system.

Fools Enter Late? Founder Characteristics and the Inherently Weak Competitiveness of Late Entrants

Does late entry cause weak competitiveness, or do inherently weak organizations enter later on average? Received literature has predominantly argued for the prior. The latter, however, is equally plausible, yet holds very different implications for theory and practice. I draw from well- established streams of literature to argue that entrepreneurs who lack relevant prior experience not only found weaker organizations on average, but also tend to enter an emerging industry relatively late. As a result, the higher-than-average failure rates among late entrants might be better explained by their inherently weak competitiveness rather than by their late time of entry and the unfavorable industry conditions at the time of their founding. The proposed theory is tested on a dataset of Greek stock brokerage companies, 1996-2005.

How Does Order of Entry Shape Competitive Strategy? An Analysis for European Mobile Operators

Research on first mover advantages is interested in the performance effects of the order of entry into new markets. However, with a few exceptions, the competitive strategies used by different cohorts of entrants have not been studied. In this paper, we advance research on first mover advantages by focusing on the competitive strategies employed by firms that differ in their order of entry. We propose that pioneers, early followers and late entrants differ in terms of the competitive strategy employed. Additionally, we argue that the different competitive strategies used evolve over time. To test our hypotheses we use data from the European mobile industry. Our findings show that pioneers tend to focus on service quality and that they are able to generate more value through higher prices. Unexpectedly, we find that pioneers also benefit from better cost structures than late followers. However, over time, pioneers worsen their relative position in terms of operating costs.

Cross-border merger waves

We examine the valuation effects of cross-border merger and acquisition (M&A) waves. Like domestic M&As, cross-border M&As cluster by industry and time. Cross-border M&A waves create value overall: acquirer announcement returns, combined acquirer and target announcement returns, and post-merger operating performance within waves are significantly higher than those outside of waves. Unlike domestic M&A waves, deals undertaken later in waves outperform those earlier in waves. The late entrants' outperformance is stronger when target countries differ from acquirer countries in terms of culture, financial development, and legal system. Overall, the results suggest that cross-border acquisitions promote efficient redeployment of corporate assets.

Strategic IT investment in B2B e-commerce platform on user loyalty: considering variable investment cost

In the competitive market of B2B e-commerce platform, the early entrants have the advantage of switching cost while the late entrants have the advantage of declining information technology (IT) cost. Considering the variable investment cost due to the improvement of platform quality, the paper develops an IT investment model to investigate the best investment strategy for B2B e-commerce platform under the impact of switching cost, declining IT cost, price-sensitive coefficient and quality-sensitive coefficient. Results show that switching cost helps early entrants increase investment in platform quality, assume an aggressive investment strategy. Declining IT cost helps late entrants increase investment in platform quality and assume an aggressive investment strategy only when switching costs are lower. With the increase of price-sensitive coefficient, early entrants and late entrants should both decrease investment in platform quality. With the increase of quality-sensitive coefficient, early entrants and late entrants should both increase investment in platform quality.

Simultaneous versus sequential all-pay auctions: an experimental study

While both simultaneous and sequential contests are mechanisms used in practice such as crowdsourcing, job interviews and sports contests, few studies have directly compared their performance. By modeling contests as incomplete information all-pay auctions with linear costs, we analytically and experimentally show that the expected maximum effort is higher in simultaneous contests, in which contestants choose their effort levels independently and simultaneously, than in sequential contests, in which late entrants make their effort choices after observing all prior participants’ choices. Our experimental results also show that efficiency is higher in simultaneous contests than in sequential ones. Sequential contests’ efficiency drops significantly as the number of contestants increases. We also discover that when participants’ ability follows a power distribution, high ability players facing multiple opponents in simultaneous contests tend to under-exert effort, compared to theoretical predictions. We explain this observation using a simple model of overconfidence.

Analysis of Service Recovery Failure: From Minority Perspective

1.IntroductionMarketing literature has been revolving around the consumer for the past decade. Finding the perfect fit between the service provider and the customer together with increasing emphasis on diversity has been a challenge. Adapting to the reality of diverse business environment required restructuring. In order to customize their services for the diverse consumer groups, firms have been spending billions of dollars for recruiting and training the workforce for the market. However, literature has not emphasized the diversity issue enough in order to lead the way for executives in the market place.The literature in general has recognized the value in customer and market orientation. Organizations are constantly learning to adapt to the market that they are operating in. When the organization is able to function the way that fits in with the expectations of the market, they benefit from this. The key in adapting towards the needs and wants of customers is all about finding out the expectations of them. Service failure literature has investigated this issue deeply. Customer's expectations have a great impact on how they perceive the service received by the service provider. For instance, Bolton and Mattila (2015), reports that warmth in communal relationships between the customer and the failed service provider is needed for rapid service recovery. According to the authors, how customers perceive the company, even in areas not directly related to consumer-buyer relationships, such as corporate social responsibility, shapes customers' perceptions and in return their willingness forgive in case of a service failure.The strategy literature talks about the advantages of early entrants and how when under certain circumstances, late entrants can also be successful in the same market despite all the advantages of the early entrants (Varadarajan et al., 2008). The main reason for their success remains to be able to adapt and offer a cost efficient product that serves the same function with the competitor, in other words creating a competitive advantage. A competitive advantage can truly serve its purpose when it is hard to imitate and it serves as a differential advantage that is appealing to the target market.Customer expectations change based on both the market and the quality and the type of service that the firm offers. Even though the goods and services offered may be similar, the expectations of the customers may be different. In a service failure situation, the recovery expectations of customers also vary based even when the goods and services are very similar. The reason for this is because of cultural differences between the customer and the service provider. Therefore the service provider should be aware of the varying service recovery expectations and adapt to these in order to gain the customer for a returned purchase (Ringberg et al., 2007).Service recovery literature has long found evidence that when customers experience a series of service failures and recovery attempts, their perception changes based on the most recent recovery attempt. The repurchase intent of the customers increases when they experience satisfactory recovery attempts. A study has tested the impacts when customers experience two service failures. The findings indicate that, when customers experience a satisfactory recovery effect after an unsatisfactory recovery effect the recent experience is the one remembered in future purchasing decisions (Maxham and Netemeyer, 2002). In addition, after a service failure, when poor service recoveries are present, this creates a double deviation effect and has a compounding effect on the already low customer evaluations (Maxham and Netemeyer, 2002).Experiencing a service failure with a recognized brand also changes the perceptions of the customers toward the service failure. Roehm et al. (2007) indicated that when the responses or recovery attempts are timed immediately after the failure, high equity brands fare the best. …

Adoption of BIM by architectural firms in India: technology–organization–environment perspective

ABSTRACTBuilding information modelling (BIM) is being heralded as a remarkable innovation in the built environment sector with expectations of lofty sector-wide improvements. Some countries have shown remarkable levels of uptake of BIM, along the way documenting some evidence of benefits stemming from BIM. However, countries such as India and China are late entrants in the BIM adoption journey and are seeing a slower adoption rate. This study develops a model using the technology–organization–environment framework to study the factors influencing BIM adoption by architectural firms in India and reasons for this slow adoption. The proposed model of BIM adoption is tested using the partial least square method against responses collected from 184 industry professionals based in India. Findings reveal that the adoption of BIM by Indian architectural firms is at the ‘experimentation’ stage with variables such as expertise, trialability, and management support exhibiting a strong positive influence on BIM adoption. The study also explains the status of BIM adoption in India with the help of a multi-level social construct, which places the level of BIM adoption in India between the micro- and meso-levels of organizational scales. Similarities and dissimilarities with previous findings are discussed in the paper to highlight the findings of this study.

Leadership Styles, Leader’s Effectiveness and Well-being: Exploring Collective Efficacy as a Mediator

The present study explored the relationships among leadership styles, leader’s effectiveness and well-being directly as well as indirectly through collective efficacy among the employees of the education industry, the latest entrant on the Indian scene. Ninety full-time employees participated in the study. They were administered the Multifactor Leadership Questionnaire (MLQ; Bass & Avolio, 2004. The multifactor leadership questionnaire: Third edition manual and sampler set), Job-related Affective Well-being Scale (JAWS; Van Katwyk, Fox, Spector & Kelloway, 2000. Journal of Occupational Health Psychology, 5[2] , 219–230) and Collective Efficacy scale (Karrasch, 2003. Lessons learnt on collective efficacy in multinational teams. Alexandria, VA: United States Army Research Institute for the Behavioral and Social Sciences). Mediation regression analysis was used to test the hypotheses. The results revealed that transactional style has influenced both the outcome variables directly as well as indirectly more than the other two leadership styles. The study contributes to the scantly explored indirect linkages of collective efficacy on leadership styles, effectiveness and well-being.

Communication drivers for drug adoption in an uncertain world

Purpose The quality and reliability of medical communication for branded drug adoption is extremely critical, not only for safeguarding patient interests but also for ensuring successful investments by multinational pharmaceutical firms. This paper predicts doctors’ prescribing intentions based on communication relationship among factors for late entrant branded drugs, compared with pioneering brand choice, for treating chronic diseases such as hypertension. Design/methodology/approach The constructs were validated with structural equation model for a sample set of 151 doctors from private hospitals in the National Capital Region of India. Findings This research reveals communication drivers and draws on theory to suggest that the doctor’s behavioural prescription intentions, subject to social influence from their colleagues, leads to lower adoption responses. Research limitations/implications Given that limitations on sample size are often unavoidable, this study reveals that, due to the availability of substituting brands, alternate therapeutic routes and lack of availability of a practical guide for prescription, a communication model needs to be developed and validated. Practical implications Furthermore, managers of pharmaceutical firms should differentiate between the effects of direct and indirect communication–integration efforts for minimizing uncertainty in drug adoption in the context of the fragmented and unpredictable Indian market. Originality/value A late entrant may lose its dominant market share to alternate brands from other suppliers due to communication gaps in an unstructured market, leading to low adoption intentions. The study provides business theorists, drug marketers and health-care professionals with unique insights into specific communication drivers of prescribing decisions, aimed at ensuring reliable and appropriate drug adoption in Indian markets.

Exclusionary strategies and the rise of winner-takes-it-all markets on the Internet

The success of late entrants in many digital markets suggests network and lock-in effects, albeit important market forces in most digital markets, do not confer sustainable first-mover advantages. In our analysis we suggest exclusionary practices may play a major role explaining the rise of “winner-takes-it-all” markets on the Internet. The entry deterrence literature has extensively analyzed incumbents׳ strategic moves in order to make market entry unprofitable or, at least, to minimize the harm that entry causes. In our paper we propose a richer theoretical framework allowing both the incumbent as well as a new entrant to carry out strategic investments. Those allow the incumbent to deter market entry, but also the new entrant to squeeze the incumbent out of the market. We find that competitive advantage and strategic interaction determine a “winner-takes-it all” or a duopoly market outcome. If neither player enjoys a clear-cut cost or demand advantage, a duopoly market outcome will emerge. However, for both incumbent and new entrant there is a strong incentive to complement a possible competitive advantage with exclusionary practices in order to monopolize a market and increase profits. This result suggests “winner-takes-it-all” market results on the Internet may result from exclusionary practices, nourishing antitrust concerns with today׳s major Internet players’ market dominance.

The existence of double jeopardy within the order of entry effect

Order of entry research has stressed the importance of a superior marketing mix effort relative to the pioneer if a late entrant is to overcome the order of entry effect. Several researchers have argued, but have not demonstrated, that a superior marketing mix effort may even help a late entrant avoid the order of entry effect. If this is proven to be the case, a double jeopardy trend may exist in that late entrants that have a superior (inferior) marketing mix effort not only gain (lose) market share through the effects of this superiority, they also avoid (incur) the market share penalty associated with their entry position. Consumer scanner data from 24 categories were used to demonstrate the existence of a double jeopardy trend within the order of entry effect in that a late entrant’s market share benefits twice from a superior marketing mix effort and is punished twice for an inferior effort.

Expert youth coaches’ diversification strategies in talent development: A qualitative typology

The development of expert-level performance in sports is discussed against the background of two different pathways. The early specialization approach emphasizes both early onset and high volumes of sport-specific practice in a desired main sport. On the other hand, the diversification approach promotes diversified involvement in a range of other sports with later specialization. This study examines the way in which youth coaches translate the antagonistic concepts of specialization and diversification into their coaching strategies during the early stages of talent development. Using qualitative research methodology, 44 expert German youth coaches (M age = 45.1 years, SD = 7.5; 39 male and 5 female) in 24 different sports, with an average of 21.7 years accumulated coaching experience (SD = 7.0) were included in the inductive thematic analysis. Analysis showed a differentiated understanding of the process of specialization that considered multiple ways to apply diversification both within sports and across several sports. Although all of the coaches appeared to acknowledge the importance of within-sports diversification, there was considerable variation in the reported purposeful implementation and significance of sporting activities other than the main sport leading to a nuanced typology of strategies. The typology could be divided into the following four categories based on the preferred strategies that the coaches described: (I) changers and late entrants; (II) early engagement in DS + secondary sports; (III) early engagement in DS + supplementary sports; and (IV) early engagement in DS + specialization. The findings strengthened existing suggestions of a gradual and multidimensional understanding of diversification prior to necessary specialization. Furthermore, it can be assumed that the preferred strategies are fundamentally influenced by individual cognitions and contextual aspects that acknowledge the complex and ideographical nature of coaching.

Stress among Early and Late Entrants in Medical Education

This study has been designed to find out stress in early and late entrants in medical education and also age and gender interaction effect on stressor. The study was conducted on 1200 first year medical students ten randomly selected medical colleges of North Indian states of India. Stress of medical students was measured in terms of various stressors. Medical Student Stressor Questionnaire (MSSQ) developed by Muhamad S. B. Yusoff, Ahmad F. A. Rahim and Mohd J. Yaacob was used to identify six domains of stressor including – Academic related stressors (ARS), Intrapersonal and interpersonal related stressors (IRS), Teaching and learning-related stressors (TLRS), Social related stressors (SRS), Drive and desire related stressors (DRS) and Group activities related stressors (GARS). Data were collected in person with each respondent. Means, Standard deviations for each domain were calculated separately for boys and girls and age groups and F test was used to find out the main effects and the interaction effects for each domain of stress. Significant interaction effects were found in all the domains of stressor except two ARS and IRS among groups. Our brief survey suggests that there are substantial differences expressed by these older students in regard to stressor prevalence. Current study demonstrated that early entrant boys and late entrant girls feel more academic related stress. For all other domains early entrants were having more stress than were their younger counterparts. The findings can help understand harms and stresses in early and late entrants in medical education and prepare intervention and guidance programmes for new medical entrants to beat stress and healthier amendment.

Overcoming the liability of newness: Entrepreneurial action and the emergence of China's private solar photovoltaic firms

This study explores how entrepreneurs introducing a new organizational form can build legitimacy and capabilities to overcome significant liabilities of newness, and how their actions and the institutional structure co-evolve. Our multiple case study design enabled us to explicate specific actions that entrepreneurs founding China's private solar photovoltaic (PV) firms took as they built organizational capabilities and established their legitimacy vis-à-vis resource holders and global markets. We identified three legitimacy-based strategies they used: leveraging their existing sources of legitimacy, aligning their actions with established institutional rules and norms, and enacting the institutional environment to change perceptions of what is legitimate. We also found a stark contrast between the early and late entrants. The early entrants had to build an effective organizational capability and establish their own firm's legitimacy, as well as establish the legitimacy of the private Chinese solar PV firm as a viable organizational form, both domestically and abroad. Later entrants could leverage the legitimacy established by the early entrants, enabling them to more easily and quickly access external resources and become competitive. Our findings also suggest an important role for government in promoting and supporting entrepreneurship that complements well-established approaches. Namely, through its policies and actions, the government can create an environment in which experimentation and exploration is legitimate, thereby making it easier for entrepreneurs, new ventures and new organizational forms to access critical resources and realize their potential.

Exclusionary Strategies and the Rise of Winner-Takes-It-All Markets on the Internet

The success of late entrants in many digital markets suggests network and lock-in effects, albeit important market forces in most digital markets, do not confer sustainable first-mover advantages. In our analysis we suggest exclusionary practices may play a major role explaining the rise of winner-takes-it-all markets on the Internet. The entry deterrence literature has extensively analyzed incumbents’ strategic moves in order to make market entry unprofitable or, at least, to minimize the harm that entry causes. In our paper we propose a richer theoretical framework allowing both the incumbent as well as a new entrant to carry out strategic investments. Those allow the incumbent to deter market entry, but also the new entrant to squeeze the incumbent out of the market. We find that competitive advantage and strategic interaction determine a winner-takes-it all or a duopoly market outcome. If neither player enjoys a clear-cut cost or demand advantage, a duopoly market outcome will emerge. However, for both incumbent and new entrant there is a strong incentive to complement a possible competitive advantage with exclusionary practices in order to monopolize a market and increase profits. This result suggests winner-takes-it-all market results on the Internet may result from exclusionary practices, nourishing antitrust concerns with today’s major Internet players’ market dominance.

A Structural Analysis of Detailing, Publicity and Correlated Learning: The Case of Statins

When Lipitor, an anti-cholesterol drug (statin) of Pfizer, hit the market in 1997, Pfizer did not establish any direct evidence on its ability in reducing heart disease risks. Despite its lack of direct evidence, Lipitor became very successful. To explain this puzzle, we propose a theory of correlated learning and indirect inference by physicians. We define a variable, “efficiency ratio,” which measures how efficiently a drug can convert reduction in cholesterol levels to reduction in heart disease risks and allow the physicians’ initial prior belief on the efficiency ratio to be correlated across drugs. Landmark clinical trials provide information about drugs’ efficiency ratios. Because of the correlated prior perceptions, a new clinical trial’s information on a drug’s efficiency ratio can update physicians’ belief on other statins’ efficiency ratios. Physicians then infer each statin’s ability in reducing heart disease risks based on the perceived efficiency ratio and its ability in reducing cholesterol. Thus correlated learning may allow late entrants to free-ride on the scientific evidence and informative marketing activities of the incumbents.In our estimation, we supplement product level market share data with data on patients' switching rates and discontinuing rates. This allows us to take the presence of switching costs and refilling costs into account when estimating our model. Our estimation results suggest that there is information spillover of landmark clinical trial results across drugs. This, together with the fact that Lipitor is very effective in lowering cholesterol levels, allow Lipitor to gain late mover advantage. Moreover, we find that intensive detailing efforts (via its informative and persuasive roles) also contribute to its success.

Fashionably late: Strategies for competing against a pioneer advantage

This study delineates the conditions under which a late entrant is able to outperform a pioneer brand by examining the value relevance of alignable and non-alignable attributes. The first experiment shows that the late entrant can surpass the pioneer by adopting either a distinctive (new, non-alignable attribute) or enhancing (improved, alignable attribute) strategy depending on the value relevance of the new attributes. The second experiment provides evidence that pricing cues become instrumental when the value relevance of the late entrant with a distinctive strategy is low. In this context, the findings show that increasing the price of the product counter-intuitively enhances the preferences for the late entrant.

Evolving Important Role of Lutetium-177 for Therapeutic Nuclear Medicine.

Lutetium-177 ((177)Lu) is a late entrant into the nuclear medicine therapy arena but is expected to become one of the most widely used therapeutic radionuclides. This paper analyses the reason for the increasing preference of (177)Lu as a therapeutic radionuclide. While the radionuclidic properties favor its use for several therapeutic applications, the potential for large scale production of (177)Lu is also an important aspect for its acceptability as a therapeutic radionuclide. This introductory discussion also summarizes some developing clinical uses and suggested future directions for applications of (177)Lu.