First study to examine concept of 'market-driving'
Print version
Professor Pervez Ghauri and Dr Fatima Wang from the Department of Management, King’s College London have been awarded an ESRC grant for £357,151.61. The three year project ‘Key Factors in International Market Driving Process: The Role of Internal Competencies and External Networks’ aims to examine the concept of 'market-driving'.
In the globalization era, firms often ask, "How do we develop sustainable competitive advantage in international markets?" Existing literature to a large extent suggests that firms should adapt the products and the market strategy in line with the needs and wants of each market they go to. However, Professor Ghauri and Dr Wang suggest that a 'market-driving' approach allows firms to develop long term competitive advantage. A 'market-driving' approach is based upon proactively addressing the existing market conditions.
Professor Ghauri comments, ‘The 'market-driving' approach creates a unique source of sustainable competitive advantage that is less prone to imitation by competitors. On the contrary, the 'market-driven' approach of simply responding to the market can be more easily copied by other firms. The concept of 'market-driving' is relatively new, and management literature has not yet offered a comprehensive framework that discusses the preconditions for succeeding with the 'market-driving' approach, what elements it consists of and how they can be measured, and whether or under what circumstances the 'market-driving' strategy actually leads to better market performance. We argue that certain internal capabilities and external networks should be recognised as a critical part of the 'market-driving' approach.’
In the globalization era, firms often ask, "How do we develop sustainable competitive advantage in international markets?" Existing literature to a large extent suggests that firms should adapt the products and the market strategy in line with the needs and wants of each market they go to. However, Professor Ghauri and Dr Wang suggest that a 'market-driving' approach allows firms to develop long term competitive advantage. A 'market-driving' approach is based upon proactively addressing the existing market conditions.
Professor Ghauri comments, ‘The 'market-driving' approach creates a unique source of sustainable competitive advantage that is less prone to imitation by competitors. On the contrary, the 'market-driven' approach of simply responding to the market can be more easily copied by other firms. The concept of 'market-driving' is relatively new, and management literature has not yet offered a comprehensive framework that discusses the preconditions for succeeding with the 'market-driving' approach, what elements it consists of and how they can be measured, and whether or under what circumstances the 'market-driving' strategy actually leads to better market performance. We argue that certain internal capabilities and external networks should be recognised as a critical part of the 'market-driving' approach.’
