First-Mover Advantage

First-mover advantage, or pioneering advantage, refers to the notion that being the first firm to pursue an opportunity is associated with long-term competitive advantage. This discussion explores the concept of first-mover advantage from economic, behavioral, and empirical perspectives. Arguments and counterarguments offered by each perspective are examined. The review suggests that despite being accepted as conventional wisdom, evidence in support of first-mover advantage is inconclusive. However, a nuanced approach examining contingency effects on the pioneering-performance relationship might be able to resolve some of the past inconsistencies, and add clarity to the issue of first-mover advantage in the future.