The Impact of Market-Driven vs. Market-Driving Strategies on Products’ Short-Term and Long-Term Sales Growth

Vlašić, Goran; Keleminić, Kristijan; Dropulić, Branka

doi:10.22598/mt/2022.34.2.205

Cited by 2 publications

(2 citation statements)

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“…March (1991, p. 71) refers to exploitation as "refinement, choice, production, efficiency, selection, implementation and execution" and refers to exploitation, as "search, variation, risktaking, experimentation, play, flexibility, discovery, and innovation." While in exploitation, the focus is on improving and maximizing the efficiency of existing activities for short-term more-certain benefits, in exploration the focus is on innovation and discovery for longer-term and less-certain benefits (see Vlasic et al, 2022).…”

Section: Decision-making Cognitive Profile and Exploration-exploitati...mentioning

confidence: 99%

“…Ever since March (1991) recognized the distinction between exploitation and exploration, a large body of literature was developed to understand how organizations prefer one over the other and how they manage to balance between these two contradicting options (see Lavie et al, 2010). March (1991, p. 71) refers to exploitation as “refinement, choice, production, efficiency, selection, implementation and execution” and refers to exploitation, as “search, variation, risk‐taking, experimentation, play, flexibility, discovery, and innovation.” While in exploitation, the focus is on improving and maximizing the efficiency of existing activities for short‐term more‐certain benefits, in exploration the focus is on innovation and discovery for longer‐term and less‐certain benefits (see Vlasic et al, 2022).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

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Cognitive profiles of strategic decision‐makers: Implications for exploration–exploitation strategies

Vlašić,

Dabić,

Krupka

2024

Strategic Change

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Organizational ambidexterity has long been in the focus of understanding how organizations address tensions between exploitation, which implies building new competencies in order to drive radical change, and exploitation, which implies building on top of existing competencies in order to deliver persistent incremental improvements. Research has shown that, at the organizational level, established incumbent organizations tend to avoid exploration. In this paper, we focus on understanding which cognitive profiles tend to get promoted to the highest management positions in established incumbent organizations. To address this research question, we used a data set on 176 key decision‐makers at five multinational organizations. Results indicate that inherent biases in promotion decisions at the highest levels of the established incumbent organizations favor pattern‐recognition cognitive profiles of managers, thus influencing organizational preference for exploitation over exploration. Results have implications for theory, explaining neurocognitive underpinnings of preference for exploitation in case of established incumbent organizations which arise from biases in promotional decisions; and for practice, implying the importance of debiasing promotion decisions to ensure organizational ability to deliver on explorative strategies, favoring innovations and new market creation.

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Section: Decision-making Cognitive Profile and Exploration-exploitati...mentioning

confidence: 99%

Section: Theoretical Backgroundmentioning

confidence: 99%

Cognitive profiles of strategic decision‐makers: Implications for exploration–exploitation strategies

Vlašić,

Dabić,

Krupka

2024

Strategic Change

Self Cite

View full text Add to dashboard Cite

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Competitive Strategy Orientation and Market Orientation for Product Innovative Success in Ethiopian SMEs

Nege,

Kero

2024

SJBM

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This empirical study aims into how market orientation and competitive strategy orientation affect the success of innovative products in small and medium-sized Ethiopian businesses. Small and medium-sized businesses are essential to economic growth, especially in developing nations like Ethiopia, where they are the main drivers of local development and the generation of jobs. However, these companies face significant challenges including scarce resources and volatile markets, necessitating the use of tactical approaches to preserve their competitiveness and foster growth. A mixed-methods approach was used in this cross-sectional study, with 396 respondents completing self-administered questionnaires for the quantitative data and semi-structured open-ended interviews for the qualitative data. The analysis was conducted using SPSS and the AMOS app. The findings show both an increase in competitive strategy orientation and market orientation results in an increase product inventive success, and also, an increase in product innovative success results in an increase in both market share and financial performance. The study also demonstrates the noteworthy and indirect positive relationships that market orientation and competitive strategy orientation have on market share and financial success. The outcomes showed how crucial these strategic orientations are to the capacity of Ethiopian SMEs to innovate, overcome challenges, preserve their competitiveness, and promote economic growth. The study emphasizes how important it is for Ethiopian SMEs to have a competitive strategy orientation that is in line with their market orientation in order to successfully innovate new products. Businesses can better respond to market needs and competitive pressures and promote innovation by utilizing insights from competitive analysis and market research, by offering insightful guidance on enhancing innovation and competitiveness in the Ethiopian context, as well as practical pointers for SME leaders and policymakers, this study fills a vacuum in the literature.

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The Impact of Market-Driven vs. Market-Driving Strategies on Products’ Short-Term and Long-Term Sales Growth

Cited by 2 publications

References 27 publications

Cognitive profiles of strategic decision‐makers: Implications for exploration–exploitation strategies

Cognitive profiles of strategic decision‐makers: Implications for exploration–exploitation strategies

Competitive Strategy Orientation and Market Orientation for Product Innovative Success in Ethiopian SMEs

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