A central proposition in organization theory is that discrete organizational forms are matched in a discriminating way to environmental conditions, business strategies, or exchange rate conditions. This paper develops a contrary theoretical proposition. We argue that efficiency may dictate...

Our analysis shows that in entering a new market a firm should not just focus its attention on the price that the market awards to a pioneer, or the tradeoff between first mover advantages and disadvantages. It should also consider the adverse consequences of being laggard.