Management Summary Research Study „Delving into the interplay among market-driving strategy, dynamic capabilities, transformational leadership, and firm performance“
The current research’s objective is to explore the interplay among market-driving strategy (MDS), dynamic capabilities (DCs), transformational leadership (TL), and their impact on firm performance. The study adopts a quantitative methodology (online survey with 300 firms from the technological sector). Findings show strong positive influences of MDS on DCs, TL, and firm performance. Furthermore, DCs and TL mediate the MDS – firm performance relationship. The study unveals the roles of TL and DCs as enablers and catalysts for the transmutation of MDS endeavors into performance outcomes. Thus, it both connects leadership, strategy and innovation literature, and provides actionable guidance on how to execute MDS and successfully innovate in markets. It also reflects that the MDS-firm performance relationship encompasses complex mediating factors, and sizeable indirect relationships that, combined with the direct effect, benefit the given market-driving firm.
Moreover, the work bears practical and social implications. Intriguing advice on marketers is provided, regarding the complex mechanisms with which MDS can trigger firm performance, through the orchestration of the elements of MDS, DCs, and TL. Finally, light is shed on aspects such as changing markets and influencing the preferences and behavior of market players (i.e., customers, competitors, channels of distribution, and wider society).
Target groups of stakeholders: Academics and Practitioners