Advanced

Market driving strategies : Beyond localization

Ghauri, Pervez; Wang, Fatima; Elg, Ulf LU and Rosendo-Ríos, Veronica (2016) In Journal of Business Research 69(12). p.5682-5693
Abstract
Adaptation to local customer preferences may result in a more rapid market acceptance, and market orientation studies often propound that firms need to closely monitor changes in the marketplace and adapt to customer needs in order to enhance firm performance (Slater & Narver, 1995). However, firms operating in multiple markets may choose minimal adaptation to local market trends in favor of introducing proprietary value propositions that satisfy customers' latent needs (Ghauri, Elg, Tarnovskaya, & Wang, 2011; Harris & Cai, 2002). Scholars suggest that such firms are “market driving” (Jaworski, Kohli, & Sahay, 2000). This paper investigates how firms can be market driving in foreign markets. Findings suggest that market... (More)
Adaptation to local customer preferences may result in a more rapid market acceptance, and market orientation studies often propound that firms need to closely monitor changes in the marketplace and adapt to customer needs in order to enhance firm performance (Slater & Narver, 1995). However, firms operating in multiple markets may choose minimal adaptation to local market trends in favor of introducing proprietary value propositions that satisfy customers' latent needs (Ghauri, Elg, Tarnovskaya, & Wang, 2011; Harris & Cai, 2002). Scholars suggest that such firms are “market driving” (Jaworski, Kohli, & Sahay, 2000). This paper investigates how firms can be market driving in foreign markets. Findings suggest that market driving firms tend to possess certain capabilities in order to reconcile conflicting demands in the local markets and company strategies at the global level. Using network, knowledge transfer, branding and market orientation literature, the present study provides evidence on the capabilities that global firms possess in order to drive markets. Based on a survey of 110 international companies, this study shows that strong capabilities in configuration, networking, knowledge transfer and internal branding can lead to market driving behavior. This study is the first to carry out a systematic investigation of market driving behavior in international firms. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Market driving, Standardization, International marketing
in
Journal of Business Research
volume
69
issue
12
pages
12 pages
publisher
Elsevier
external identifiers
  • scopus:84976501344
ISSN
0148-2963
DOI
10.1016/j.jbusres.2016.04.107
language
English
LU publication?
yes
id
c2aa70ef-a71b-4468-bf87-a345bee66522
date added to LUP
2016-08-14 13:59:47
date last changed
2017-01-01 08:31:32
@article{c2aa70ef-a71b-4468-bf87-a345bee66522,
  abstract     = {Adaptation to local customer preferences may result in a more rapid market acceptance, and market orientation studies often propound that firms need to closely monitor changes in the marketplace and adapt to customer needs in order to enhance firm performance (Slater & Narver, 1995). However, firms operating in multiple markets may choose minimal adaptation to local market trends in favor of introducing proprietary value propositions that satisfy customers' latent needs (Ghauri, Elg, Tarnovskaya, & Wang, 2011; Harris & Cai, 2002). Scholars suggest that such firms are “market driving” (Jaworski, Kohli, & Sahay, 2000). This paper investigates how firms can be market driving in foreign markets. Findings suggest that market driving firms tend to possess certain capabilities in order to reconcile conflicting demands in the local markets and company strategies at the global level. Using network, knowledge transfer, branding and market orientation literature, the present study provides evidence on the capabilities that global firms possess in order to drive markets. Based on a survey of 110 international companies, this study shows that strong capabilities in configuration, networking, knowledge transfer and internal branding can lead to market driving behavior. This study is the first to carry out a systematic investigation of market driving behavior in international firms.},
  author       = {Ghauri, Pervez and Wang, Fatima and Elg, Ulf and Rosendo-Ríos, Veronica},
  issn         = {0148-2963},
  keyword      = {Market driving,Standardization,International marketing},
  language     = {eng},
  number       = {12},
  pages        = {5682--5693},
  publisher    = {Elsevier},
  series       = {Journal of Business Research},
  title        = {Market driving strategies : Beyond localization},
  url          = {http://dx.doi.org/10.1016/j.jbusres.2016.04.107},
  volume       = {69},
  year         = {2016},
}