Measuring market-sensing capabilities for new product development success

What is it about?

Organizational capabilities for sensing market opportunities are a critical source of sustainable competitive advantage. Although they allow start-ups and well-established firms to become aware of the surrounding environment, there is no common agreement about its measurement. We develop a scale that measures sensing capabilities. Findings reveal theoretically sound constructs based on four underlying sensing capabilities components: analytical processes, customer relationship, business experience, and organizational articulation. Results demonstrate reliability, convergent, discriminant, and nomological validity. All four dimensions are positively associated with new product development success and are more likely to appear in organic organizational structures.

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