Why shape a market? Empirical evidence on the prominent firm-level and market-level outcomes of market-driving strategy

Vlasis Stathakopoulos, Konstantinos G. Kottikas, Grigorios Painesis, Ioannis G. Theodorakis and Efthymia Kottika

Journal of Business Research, 2022, vol. 139, issue C, 1240-1254

Abstract: Market-driving strategy (MDS) is defined as influencing the market structure and/or the market players’ behavior in a direction that reinforces a firm’s competitive edge. Hitherto, limited evidence exists regarding its consequences, while innovation is of profound importance for MDS. The objectives of this project are to identify: (1) the main firm-level and market-level outcomes of MDS, (2) mediating mechanisms among those outcomes, and (3) the influence of radical and incremental product innovation capabilities on MDS. A mixed-methods research design is applied, grounded in three complementary studies (a qualitative study [27 in-depth interviews], an online survey [241 participants], and a follow-up online survey [101 participants]). Findings suggest that: (a) the firm-level outcomes of MDS are financial and customer performance, organizational reputation, and sustained competitive advantage; (b) radical and incremental product innovation trigger MDS; (c) incremental innovation and organizational reputation are positively related to financial performance; and (d) MDS enhances market change.

Keywords: Market-driving strategy; Market shaping; Market change; Market-driving strategy outcomes; Mixed-methods methodology; Partial least squares structural equation modeling (PLS-SEM) (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:139:y:2022:i:c:p:1240-1254

DOI: 10.1016/j.jbusres.2021.10.057

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