Identifying a Combination of Key Resources to Overcome the Entry Barriers in the Electric Vehicle Market

Abstract

Our study clarifies a combination of key resources to overcome entry barriers in the electric vehicle market, and further their minimum level required to enter it. Analyzing 14 firms over 2005-2017, we find that firms securing a combination of low cost-high capacity battery, low vehicle price, long driving range and high safety rating successfully enter the market. A lack of any single resource results in market entry failures. Also, the relative importance of resources varies by market segments, emphasizing importance of a segment-optimized resources management. Theoretically, our study connects entry barriers to resource-based view. Managerially, firms can improve strategic resource management for a successful market entry. Government can introduce a package of policies supporting resources development or acquisition of such companies, thereby boosting market entry, innovation, and growth of companies.