THREE ESSAYS ON ENTRY TIMING

In this dissertation, I strive to enhance our understanding of the effect of entry timing on firm performance using both empirical and formal modeling techniques. I accomplish this through addressing three major unanswered issues in entry timing research. In the first essay of my dissertation, I theoretically examine the effect of selection bias on entry timing associated performance outcomes via the introduction of a novel concept called First-mover Benefits (FMB) which is both theoretically and empirically distinct from the traditional First-mover Advantages (FMA) concept. The second essay of my dissertation empirically investigates this distinction in a unique entrepreneurial setting: the marijuana retailing industry in the State of Washington. The randomized order of entry into the geographically separate jurisdictions in Washington State via the lottery system gives me the opportunity to look at the overlooked effects of two key macrocontingencies: market growth rate and rivalry intensity without any selection bias concern. The main result of this essay indicates that pioneering advantages are more likely to be found in markets with higher level of rivalry intensity. My final essay focuses on the sustainability dimension of pioneering advantage. Taking advantage of the Washington State marijuana retailing industry dataset that eliminates the selection bias issue, I examine how long entry timing associated performance benefits are sustained in this nascent industry context. I find that pioneering advantages last for only four quarters. Overall, this dissertation helps partially resolve the longstanding controversy surrounding the potential effect of entry timing on performance.