Product entry in international markets: the effect of country of origin on first-mover advantage

Chen, H C and Pereira, A (1999) Product entry in international markets: the effect of country of origin on first-mover advantage. Journal of Product & Brand Management, 8 (3). pp. 218-231. ISSN 1061-0421

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An experimental design is used to examine the effect of products’ country‐of‐origin on first‐mover advantage. Specifically, focuses on the effects of favorable/unfavorable country‐of‐origin on first‐mover advantage, as well as its effects with regard to “early followers” and “late followers”. The results have direct implications for products entering international markets as a first mover, “early” follower, or “late” follower. Results indicate that with increasing number of competitors entering an international market, a product’s favorable country image begins to lose its strategic importance. Consequently, the pursuit of first‐mover advantage may be more relevant than a positive country‐of‐origin effect. Also, the results suggest that for products from countries with a less than favorable image, it may be more useful to be a “follower” than a “first‐mover” because the advantage of being first in a market can be negated by the unfavorable country‐of‐origin effect.

Affiliation: John Cook School of Business, Saint Louis University, USA
ISB Creators:
ISB CreatorsORCiD
Item Type: Article
Uncontrolled Keywords: Country of origin, International marketing, Market entry, Product management
Subjects: Marketing
Depositing User: LRC ISB
Date Deposited: 13 Jun 2015 10:48
Last Modified: 13 Jun 2015 10:49
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