The effect of market-sensing capability on knowledge creation process and innovation Evidence from SMEs in Jordan

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=183) 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

Market-sensing capability, knowledge creation and innovation: The moderating role of entrepreneurial-orientation

This article examines the nexus between market-sensing capability, knowledge creation, strategic entrepreneurial-orientation and innovation in small and medium sized enterprises (SME). Data was garnered from (n=255) SMEs operating in Jordan and a covariance-based structural equation modelling (CB-SEM) was applied to analyze the data. SEM result illustrates a positive effect of market-sensing capability on (1) knowledge creation, and (2) firm innovation. Knowledge creation process has positive effect on (3) firm innovation. Knowledge creation process (4) mediated the link between market-sensing capability and firm innovation. Strategic entrepreneurial-orientation moderates the link between (5) knowledge creation and firm innovation, such that the positive relationship became weaker when strategic entrepreneurial-orientation is high. Theoretically and empirically this study has contributed to the existing inconsistent findings, and also offer useful managerial insights