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First Mover Advantage in the Internet Marketplace  

Lee, Sang-Myung (한양대학교 경영대학)
Choi, Jeong-Il (숭실대학교 경영학부)
Lee, Kwon-Chul (한양대학교 경영대학 대학원)
Publication Information
Journal of Information Technology Services / v.7, no.2, 2008 , pp. 59-75 More about this Journal
Abstract
Despite our extensive understanding on the Internet business and widely understood first-mover advantage. it is not clearly answered yet whether an internet firm can enjoy the first-mover advantage in the new environment of the Internet. This is mainly because the Internet marketplace itself has a complex combination of various business models, ranging from a simple channel-extension to a whole new business model. Based on new theoretical development on the first-mover advantage, we empirically test whether being an early mover in the Internet environment materially affects firm performance, using clickstream data from Korea where broadband Internet installation is ranked as top among OECD countries. Our results show the effectiveness of first-mover advantage on the web does not exist, regardless of its business model and competitive environment. This result expands our understandings on the e-business, not to mention of the real feature of first-mover advantage.
Keywords
First-mover Advantage; Internet; Clickstream Data; Competitive Environment;
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