An examination of first-mover (dis)advantages of ICT-driven innovation in the service industry

Abstract

Information and Communication Technology (ICT) has been the key driver for the modern service industry to innovate and achieve competitive advantages. In this highly competitive industry, companies actively invest technology to launch innovative services expecting to attract customers or lower cost. Academic and empirical studies have examined first-mover advantages in general industries. However, with the accelerating pace of ICT and the intense competition of the service industry, those who take the lead of adopting advanced technologies for service innovation may result to huge difficulties. This research conducts a cross-case study on ten service industries regarding their adoption of advanced ICT for service innovation and the advantages and disadvantages of their first-mover strategies. The objectives are to verify previously proposed first-mover advantages and reveal special concerns for strengthening the effect and the duration of first-mover advantages in the fast-moving service industry. © (2012) by the AIS/ICIS Administrative Office All rights reserved.