#4722. Measuring market-sensing capabilities for new product development success

July 2026publication date
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Journal’s subject area:
Business, Management and Accounting (miscellaneous);
Strategy and Management;
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Abstract:
The purpose of this paper is to conceptualize and operationalize the concept of market-sensing capabilities and analyze its relationship with new product development (NPD) success and organic organizational structures. To the authors knowledge, past measures of market-sensing capabilities have never included opportunity interpretation, through business experience and organizational articulation, as part of the concept. The measure was tested using confirmatory factor analysis (CFA). Findings reveal theoretically sound constructs based on four underlying market-sensing capabilities components: analytical processes, customer relationship, business experience and organizational articulation. Results demonstrate reliability, convergent, discriminant and nomological validity. By using this instrument, managers can assess internal organizational structures and resources allocated to sensing capabilities. By developing sensing capabilities, managers might ultimately influence their NPD strategy. Findings also reveal that sensing capabilities are positively and significantly associated with organic organizational structures. The authors new measure includes opportunity interpretation through business experience and organizational articulation.
Keywords:
Dynamic capabilities; Entrepreneurship; Innovation; Measure; New product development; Organic organizational structures; Sensing capabilities

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