Bps. Murthi et al., CONTROLLING FOR OBSERVED AND UNOBSERVED MANAGERIAL SKILLS IN DETERMINING FIRST-MOVER MARKET SHARE ADVANTAGES, Journal of marketing research, 33(3), 1996, pp. 329-336
Empirical research on pioneering advantage establishes a strong associ
ation between pioneering and market share. Researchers, however, sugge
st that managerial skills may account for the relationship and undersc
ore the need to control for such skills. The authors develop efficienc
y measures to represent a firm's managerial skills, employing the data
envelopment analysis framework as well as a regression-based approach
. Furthermore, they account for unobserved, firm-specific factors that
include unobserved managerial skills. With such systematic control fo
r observed and unobserved managerial skills, they reexamine the impact
of pioneering on market share and find that it is robust even after t
hey control for managerial skills.