Strategic foretelling: Communication-based antecedents of a firm's propensity to preannounce

The authors examine preannouncements as strategic marketing communications aimed at influencing the perceptions and attitudes of industry stakeholders. The growth of the Internet points to the expanded importance of preannouncements. With an investigation of 265 chief executive officers (CEOs) and presidents from manufacturers of new products, the authors examine the effects of three firm-specific factors (first-mover predisposition, firm information interactivity, and competitive equity building) and one environmental construct (industry dynamism) on a firm's propensity to preannounce its future intended actions. The results indicate that competitive equity building, defined as a firm's tendency to pursue a high-profile leadership position within its industry, is the main driver of a firm's propensity to preannounce. Future directions for research include the development of a normative preannouncement framework and investigation of the role of preannouncements within the context of CEO marketing activities.