South African Journal of Economic and Management Sciences
On-line version ISSN 1015-8812
Previous research suggests that the market driving behaviour of firms is linked to exceptional performance. However, the elements of market driving, its antecedents and outcomes, have so far not been empirically measured. The primary objectives of this study are to identify factors that describe market driving, develop a conceptual model, and then consider influencing factors and performance indicators drawn from the entrepreneurship and marketing literature. The model has been empirically tested using a sample of managers in the South African healthcare industry. A fully structured questionnaire was used to address the objective of this study. The realised sample of n=328 was used to analyse the conceptual model applying a partial least squares path modelling approach (PLS-PM). The results revealed that market driving is a firm behaviour and is distinguished by three distinct concepts: market sensing, influencing customer preferences and alliance formation. Three out of four antecedents: strategic orientation, entrepreneurial capital and entrepreneurial behaviour, influenced market driving ability positively. The study also demonstrated that market driving behaviour positively influences firm performance and relative competitive strength.
Keywords : corporate entrepreneurship; entrepreneurial marketing; market driving; firm performance; competitive strength.