Do perceived pioneering advantages lead to first-mover decisions?

First-mover literature suggests several pioneering advantages and disadvantages. This study investigates how managerial perceptions of these pioneering advantages affect first-mover decisions by service provider managers. According to the literature on mental models, managers will make first-mover decisions based on their perceptions of pioneering advantages and disadvantages formed from their own personal beliefs; however, little research so far links these perceptions to how first-mover decisions are made. This study tests several hypotheses regarding how perceived pioneering advantages and disadvantages affect the likelihood of making a first-mover decision in selected service industries, using a dataset from 334 senior executives in service industries over a four year period. The empirical results suggest that mental model formation does affect the first-mover decision by service pioneering managers. The study concludes with a discussion of our theoretical contribution and managerial implications.