Entry Timing in the Telecoms: An Empirical Study of the Impact of Founding CEO Backgrounds

This paper explores the role of founding CEO personal capabilities in explaining entry timing in the context of a high- tech service sector, the UK telecommunications. The qualifications and experience of a founding CEO are important strategic resources for a firm at time of entry, yet have been largely ignored in resource-based theories of firm creation. A novel dataset of firms that entered telecommunications services between 1981 and 2011 is compiled to test hypotheses on the relationship between timing of entry, entrant type, and founder backgrounds. Findings show that early entry is associated with higher university degrees and professional experience in management roles, while the subject of studies is not significant. Early entrants tend to be diversifying incumbents through the creation of new business units, while de novo companies and acquiring firms tend to enter later. This research explores resource-based theories of entry and by suggesting entry decisions are the result of managers’ personal...