The Effect of Ownership Concentration on the Catch-Up Speed of the Second Mover: Evidence From the Pharmaceutical Industry of South Korea

The importance of being a pioneer in a market is one of the major topics in the field of strategic management. While being a pioneer in the market can offer distinct advantages, the strategic importance of being a fast second mover cannot be overstated. This study explores the concept of fast follow...

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Main Authors: Arpine Martirosyan, Jae Wook Yoo
Format: Article
Language:English
Published: SAGE Publishing 2025-05-01
Series:SAGE Open
Online Access:https://doi.org/10.1177/21582440251339459
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author Arpine Martirosyan
Jae Wook Yoo
author_facet Arpine Martirosyan
Jae Wook Yoo
author_sort Arpine Martirosyan
collection DOAJ
description The importance of being a pioneer in a market is one of the major topics in the field of strategic management. While being a pioneer in the market can offer distinct advantages, the strategic importance of being a fast second mover cannot be overstated. This study explores the concept of fast following within the realm of catch-up strategy, highlighting significant factors of corporate governance that can help accelerate the speed of catching up. Drawing from theoretical frameworks and empirical evidence from the pharmaceutical industry of South Korea, this study intends to reveal how ownership concentration can impact the catch-up speed of the second mover and discusses the role of the CEO’s experience and education in this relationship. The findings of the study demonstrate that firms with higher ownership concentration tend to enter markets at a faster pace, supporting theories that concentrated ownership facilitates streamlined decision-making and quicker responses to market opportunities. Additionally, CEO education and tenure significantly moderate this relationship. Firms led by long-tenured and highly educated CEOs benefit from enhanced decision-making agility, enabling faster market entry.
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institution Kabale University
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spelling doaj-art-527fccefce824b1a85e9e8a4a7a8acfa2025-08-20T03:49:27ZengSAGE PublishingSAGE Open2158-24402025-05-011510.1177/21582440251339459The Effect of Ownership Concentration on the Catch-Up Speed of the Second Mover: Evidence From the Pharmaceutical Industry of South KoreaArpine Martirosyan0Jae Wook Yoo1 Konkuk University, Seoul, South Korea Konkuk University, Seoul, South KoreaThe importance of being a pioneer in a market is one of the major topics in the field of strategic management. While being a pioneer in the market can offer distinct advantages, the strategic importance of being a fast second mover cannot be overstated. This study explores the concept of fast following within the realm of catch-up strategy, highlighting significant factors of corporate governance that can help accelerate the speed of catching up. Drawing from theoretical frameworks and empirical evidence from the pharmaceutical industry of South Korea, this study intends to reveal how ownership concentration can impact the catch-up speed of the second mover and discusses the role of the CEO’s experience and education in this relationship. The findings of the study demonstrate that firms with higher ownership concentration tend to enter markets at a faster pace, supporting theories that concentrated ownership facilitates streamlined decision-making and quicker responses to market opportunities. Additionally, CEO education and tenure significantly moderate this relationship. Firms led by long-tenured and highly educated CEOs benefit from enhanced decision-making agility, enabling faster market entry.https://doi.org/10.1177/21582440251339459
spellingShingle Arpine Martirosyan
Jae Wook Yoo
The Effect of Ownership Concentration on the Catch-Up Speed of the Second Mover: Evidence From the Pharmaceutical Industry of South Korea
SAGE Open
title The Effect of Ownership Concentration on the Catch-Up Speed of the Second Mover: Evidence From the Pharmaceutical Industry of South Korea
title_full The Effect of Ownership Concentration on the Catch-Up Speed of the Second Mover: Evidence From the Pharmaceutical Industry of South Korea
title_fullStr The Effect of Ownership Concentration on the Catch-Up Speed of the Second Mover: Evidence From the Pharmaceutical Industry of South Korea
title_full_unstemmed The Effect of Ownership Concentration on the Catch-Up Speed of the Second Mover: Evidence From the Pharmaceutical Industry of South Korea
title_short The Effect of Ownership Concentration on the Catch-Up Speed of the Second Mover: Evidence From the Pharmaceutical Industry of South Korea
title_sort effect of ownership concentration on the catch up speed of the second mover evidence from the pharmaceutical industry of south korea
url https://doi.org/10.1177/21582440251339459
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