Determinants of Entry Timing: Firm Capabilities and Environmental Conditions

In this paper, we analyze the influence of the environmental conditions and firm capabilities on the time of entry. We find significant direct and interaction effects. Furthermore, we show that firms develop a pioneer behavior not only when they have the suitable capabilities to take advantage of the perceived opportunities in the industry but also when these firms have key capabilities to maintain their first‐mover advantages, given the perception of unfavorable conditions in the industry.