Innovation, Second Mover and Network System

In global markets a new typology of firm is emerging. Such new kind of firm has been defined second mover as it combines strategies of innovation and imitation. The purpose of this paper is to identify which external factors of network system positively influence the business performance of a second mover firm by applying a PLS-Path Modeling analysis to the Chinese and Middle Eastern markets. Our findings demonstrate that the presence of a supporting government, investment funds, and a collaborative competitive environment exercise a beneficial impact on the business performance of an second mover firm, while R&D and human resources do not represent predictors of a firm’s success.