Market‐Driving Capability: An Empirical Study on Antecedents and Consequences

Abstract What enables market‐driving behaviour, and is it a worthwhile business strategy? This fundamental question intrigues both managers in firms and researchers in marketing and strategic management, yet surprisingly, it remains underexplored. To this end, we assess the antecedents and consequences of market‐driving capability. Using the resource‐based view as our theoretical underpinning, we develop a conceptual model and empirically test the hypotheses with a sample of 416 managers via partial least squares structural equation modelling. We find that learning capability and big data analytics capability significantly influence market‐driving capability in contemporary, data‐intensive contexts, resulting in firms not only having a competitive advantage but also achieving improved financial and market performance. A follow‐up study, conducted 4 years after the original study, provides exploratory evidence that market‐driving capability can contribute to changes in market structure over time. Overall, this paper enhances our understanding of capabilities that enable firms to drive markets and highlights the implications for individual firm performance and overall market structure.