This paper investigates the role played by a supplier’s product market experience in expediting new market entry for a buyer. We focus on the followers in the pharmaceutical industry that work with suppliers having product market knowledge due to previous collaboration with the buyer’s competitors. Using the Orange Book and the National Drug Code (NDC) database, we find that supplier’s experience in the target market accelerates a buyer’s market entry, with this effect moderated by buyers’ product knowledge in other markets, relative tie strength, and the availability of alternative suppliers in the product market.
