Market Foresight and New Product Outcomes

Abstract

Purpose

Firms with market foresight – knowledge of market changes ahead of competitors – can convert that knowledge into creative and timely new product offerings. Based on a discovery-oriented process, working closely with managers throughout the research process, we develop and test a framework delineating market information determinants and new product outcomes of market foresight.

Methodology

Using data collected primarily from senior executives of industrial manufacturers, the hypotheses were tested using partial least squares.

Findings

The results indicate that external (active scanning, lead user collaboration, and market experiments) and internal sources (boundary spanner input and interdepartmental connectedness) of market information positively affect market foresight. Further, the effects of active scanning, market experiments, and interdepartmental connectedness on market foresight are positively moderated by the organization’s open-mindedness. These findings also provide evidence that firms with superior market foresight develop more creative products, introduce them to the market faster, and introduce them at a more opportune time.

Practical implications

Our findings demonstrate that managers’ knowledge of market changes ahead of competitors is enhanced through acquiring both external and internal sources of market information. Furthermore, market foresight is significantly enhanced by managers being open-minded to the information gained from these sources as it may challenge long-held assumptions.

Originality/value

This chapter introduces a new construct, market foresight capability, to the literature that will aid managers in developing greater insight into emerging shifts in the market. For researchers, this new line of inquiry expands our understanding as to the critical sources and new product outcomes of obtaining future-focused market information.

Citation

McCardle, M., White, J.C. and Calantone, R. (2018), "Market Foresight and New Product Outcomes", Innovation and Strategy (Review of Marketing Research, Vol. 15), Emerald Publishing Limited, Leeds, pp. 169-203. https://doi.org/10.1108/S1548-643520180000015009