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HomeInsightsEffective sense-and-respond strategies

Effective sense-and-respond strategies

Abstract
Integrating the dynamic capabilities view of the firm with ambidexterity theory, this article proposes a sense-and-respond performance framework, in which technology- and market-sensing capabilities drive explorative and exploitative innovation activities, which then determine firm performance in an emerging market. With a sample of 150 Vietnamese firms, this study shows that exploratory and exploitative innovations are salient modi operandi through which the effects of technology-sensing and market-sensing capabilities affect firm performance. No performance-related empirical evidence supports the proposed complementarity between exploratory innovation and exploitative innovation. Instead, the findings imply that a firm’s ability to compete in a complex market depends on its possession of adaptive capabilities.

Liem Viet Ngo is Associate Professor of Marketing at UNSW Business School, University of New South Wales. He has published in the Journal of Product Innovation Management, British Journal of Management, Industrial Marketing Management, European Journal of Marketing, Psychology & Marketing, Journal of Business Research, among others. He currently serves on the Editorial Review Board of Industrial Marketing Management and Asia Pacific Journal of Marketing & Logistics. He has taught postgraduate and undergraduate courses including brand management, digital marketing, and advertising.

Tania Bucic is Associate Professor of Marketing at UNSW Business School, University of New South Wales. Her research focuses on organizational and behavioural innovation, as well as marketing education. She has published in the Journal of Business Ethics, Journal of Strategic Marketing, Australian Journal of Management, Marketing Intelligence and Planning, Journal of Marketing Education, International Journal of Innovation Management, and others.

Ashish Sinha is Professor of Marketing and Associate Dean (Research) at the University of Technology, Sydney. His major area of interest lies in developing models that help managers make better decisions. His work has appeared or forthcoming in many academic and trade journals, including Marketing Science, the Journal of Marketing, the Journal of Marketing Research, the Journal of Consumer Psychology, the Journal of Retailing, Marketing Letters, the Journal of Retailing and Consumer Services, the Journal of Business Research, Industrial Marketing Management and Australasian Marketing Journal.

Vinh Nhat Lu is Associate Professor in Marketing and International Business in the College of Business and Economics, The Australian National University (ANU). He conducts research in the area of relationship marketing, services delivery and career development. His work has appeared in the Academy of Management Journal, Health Psychology, Tourism Management, Journal of Vocational Behavior, Journal of Business Research, among others. A multi-award winning educator, he has successfully led multiple employability initiatives for ANU students.

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