What question did this study set out to answer?

This research examines how organizational and industrial capabilities develop before entering a market, focusing on historical resource similarities.

August 1, 2002

The birth of capabilities: market entry and the importance of pre-history

Puntos clave

This research examines how organizational and industrial capabilities develop before entering a market, focusing on historical resource similarities.
Analyzing historical data regarding organizational capabilities and industry requirements.
Identifying patterns of market entry success relative to pre-entry resource characteristics.
Firms with resources closely aligned to industry needs have higher entry success rates.
Resource gaps adversely affect both the speed and approach to market entry.

Resumen

We analyze the birth of capabilities and resources within organizations and within industries, and their historical antecedents, at the time of market entry. We find a consistent theme: the greater the similarity between pre-entry firm resources and the required resources in an industry, the greater the likelihood that a firm will enter that particular industry, and the greater the likelihood that the firm will survive and prosper. In addition, resource gaps affect the likelihood, speed and mode of entry. Copyright 2002, Oxford University Press.

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