Market sensing, innovation capability and market performance: The moderating role of internal information dissemination

Abstract

Market sensing and internal information dissemination are popular concepts in the field of marketing and strategic management. Scholars in these fields are appreciating the roles of market sensing and internal information dissemination in understanding the business environmental changes to sustain competitive advantages for better firm performance. However, the interaction of market sensing and internal information dissemination couched within complementarity prospective to some extend has not been empirically tested. Therefore, This study aims to investigate the moderating effect of internal information dissemination in the exchange between market sensing and innovation and how innovation mediate the relationship between market sensing and market performance. As a result of responses from 166 firms operating in Sudan, we find that internal information dissemination strengthens the positive relationship between response of market sensing and innovation. Also innovation was found to partially mediate the relationship between market sensing and market performance. The study further develops the understanding of how market sensing influence innovation and market performance indicating the positive relationship between them. In addition our work provides managerial advices to the firms in Sudan to develop market sensing as an adaptive tool for innovation and performance.