Early bird or early worm? First-mover (dis)advantages and the success of web-based social enterprises

Achieving the optimal market entry time is of immense strategic importance for entrepreneurs, especially in online markets, where web-based social entrepreneurial activity continues to grow. This raises the question of whether first-mover market entry actually pays off or if market entry as a (later) follower might be the better option. First-mover research has so far not adequately answered this question. Our work contributes to closing this gap by transferring first-mover theory to web-based social enterprises. We expand upon first-mover theory by reflecting on the winner-take-all hypothesis to better illuminate the mechanisms of market structure development and entry decisions. Our empir…