TECHNOLOGY DEPLOYMENT BY LATE MOVERS

Abstract

It is widely accepted that the first firm to deploy the latest technology will enjoy monopoly profits. However, research shows that the first mover advantage is quickly eroded by late movers. Technology deployments by late movers remain largely under-explored. This study explores the impact of the technological and market capabilities of late movers on their deployment timing, and how this impact is moderated by the pace of frontier advancement. We find a positive association between a firm’s capabilities and the earliness of its deployment timing. A faster pace of frontier advancement exacerbates the impact of a firm’s capabilities on technology deployment timing. We draw empirical evidence from the thin film transistor-liquid crystal display (TFT-LCD) industry between 1995 and 2010. This paper contributes to the technology management literature by developing a deeper understanding of the trade-offs involved in the timing of technology deployments.