Which subfield to enter first? The role of a firm's pre-entry experiences

In this study we draw from the organizational experience and market entry literature and investigate if a firm s pre-entry experiences predict which subfield to enter first We employ a unique data set from the biotechnology industry where two distinct subfields emerged around the same time due to a revolutionary discovery Among the firms that entered one of the two emerging subfields we examine the relationship between pre entry experiences and which subfield a firm enters Our key finding is that general experience rather than specialized experience increases the likelihood of a firm entering first the subfield with higher level of uncertainty as opposed to the subfield with lower level of uncertainty (C) 2009 Elsevier Inc All rights reserved