Strategic Management, Text and Cases by Pearson

STRATEGY FORMULATION

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Economic perspective Behavioural perspective

•   Learning or experience 

curve effects

•   Learning of novel versus 

redundant information

•   Positioning with high 

market share

•  Path dependency

Nicholas (1951) is the pioneer who gave the main insight referring to an

early entry advantage, equating it to an entry barrier, which is the origin

of the first mover advantage theory in industrial organization econom-

ics. Leiberman and Montgomery (1988) attempted first to conceptual-

ize first mover advantage in the contemporary business organization

context. They postulated that opportunities arise endogenously from

either ‘proficiency’ ...