Research Proposal: Investigating the relationship between first mover advantage and strategic groups - Essay Example

ow the smooth faring for firms with similar capabilities therefore the major aim of this paper would be to establish a theoretical link between the first mover advantage and the strategic groups and whether and how it could be achieved considering the existing competencies of the firms. The available research on the subject though is available but it is largely fragmented and individualistic in nature. This study will propose a consolidate theoretical framework by combining the various research methodologies used individually.

Firms tend to enjoy the first mover advantages in the industry where clear line of leadership are established and one large firm emerge as undisputed leader in the industry with the clear position of first mover in the industry. However, in situations where clear strategic groups exists, taking the first mover advantage is little difficult because the strategic groups – consisting of rival firms- have the same capabilities and competencies and share the same strategic positions within the industry.

Research on the first mover advantage has mostly been in two areas of international management and strategy. (Ma). Within the context of international management, researches on strategic moves have been concentrated on the globally coordinated strategic groups whereas others have concentrated on the local and regional strategic groups. However, it has also been argued that the competitive rivalries and the moves by the competitors depend upon the type of industry within which the firm works. (Jr, Snow and Hoover).

The research has further concentrated on the issue of “cognitive maps of industry participants and social constructionist ideas” which determine the way leadership firms interact with each other and determine their strategic moves in the industry. (Osborne, Stubbart and Ramaprasad). Further, the empirical studies on first mover advantages have been concentrated on cross sectional and domestic players mostly focusing on the