Driving Business Growth through Adaptive Leadership, Open Innovation, and Market Sensing: The Role of Purple Ocean Strategy in Information Technology Solution Business

Abstract

The rapid development of digital technologies and increasing competitive intensity have created significant challenges for information technology (IT) solution businesses seeking sustainable growth. Organizations must continuously adapt to technological changes, customer expectations, and competitive pressures while developing innovative and differentiated solutions. However, limited research has integrated adaptive leadership, open innovation, market sensing capability, purple ocean strategy formulation, and overall business growth within a single research framework. This study aims to investigate the causal factors and relationships among adaptive leadership, open innovation, market sensing capability, purple ocean strategy formulation, and overall business growth in IT solution businesses, and to develop an empirical causal model explaining these relationships. The study employs a quantitative research design supported by qualitative thematic analysis. Data are collected from 400 respondents consisting of business owners, executives, managers, and individuals involved in organizational decision-making. A structured questionnaire using a five-point Likert scale measures the five major constructs. Descriptive statistics and structural equation modeling (SEM) are employed to assess the measurement model and test the proposed hypotheses. The anticipated results suggest that adaptive leadership positively influences open innovation, market sensing capability, purple ocean strategy formulation, and overall business growth. Open innovation and market sensing capability are expected to positively influence purple ocean strategy formulation and overall business growth. Purple ocean strategy formulation is also expected to contribute positively to organizational growth by strengthening value innovation, customer-centric innovation, competitive differentiation, continuous improvement, and strategic integration. The study is expected to provide theoretical and practical contributions by demonstrating how leadership capabilities, external knowledge, market intelligence, and strategic formulation can be integrated to strengthen the competitiveness and sustainable growth of IT solution businesses.