The effect of market-sensing capability on knowledge creation process and innovation evidence from smes in jordan

Abstract

This article aims to investigate the effect of market-sensing capability among knowledge creation and process and product innovation in small and medium-sized enterprises (SMEs) in Jordan. We propose that market-sensing capability will influence knowledge creation and process as well as product innovation. The study develops a model that contributes to the flourishing marketing management literature, i.e. the higher the knowledge creation, the higher the performance of SMEs. Data are collated from valid (n=304) respondents of Jordanian SMEs. The study uses structural equation modeling (SEM) to explore the analysis and the results indicate a positive effect of market-sensing capability on knowledge creation, and process and product innovation. Knowledge creation process has also maintained a positive effect on process and product innovation. Knowledge creation process mediated the link between market-sensing capability and process and product innovation. The study suggests that market sensing abilities of an enterprise are important for SME’s improvement which requires learning-positioning for firm effectiveness. In addition, managers need to harmonize their procedures concerning market sensing and learning. Future study can streamline the findings with a longitudinal design and insights can be acquired by exploring the impact of environmental factors surrounding strategic entrepreneurial orientation.