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

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

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.

Suggested Citation

  • Stathakopoulos, Vlasis & Kottikas, Konstantinos G. & Painesis, Grigorios & Theodorakis, Ioannis G. & Kottika, Efthymia, 2022. "Why shape a market? Empirical evidence on the prominent firm-level and market-level outcomes of market-driving strategy," Journal of Business Research, Elsevier, vol. 139(C), pages 1240-1254.
    • Handle: RePEc:eee:jbrese:v:139:y:2022:i:c:p:1240-1254
    DOI: 10.1016/j.jbusres.2021.10.057
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