The mediating role of organizational modernity and the moderator role of market dynamics on the relationship between market sensibility and firm performance

Given the rapid growth of markets and the diverse demands of consumers, traditional marketing systems cannot effectively identify consumer needs, so companies must use modern market sensing systems. This article reviews the existing literature on organizational innovativeness and modern marketing and then proposes a framework that links Market-Sensing Capability, organizational innovativeness, and firm performance. Using dynamic capability theory, it provides a framework that creates innovation as a mediator in the relationship between Market-Sensing Capability and firm performance, and the moderating role of environmental factor (market dynamics) on the relationship between organizational innovation and performance. The study population was the employees of Iran-Khodro dealerships in Tehran. Based on sampling in G*Power software, the sample estimate was 130 people, but to eliminate the effect of incomplete questionnaires, 200 samples were distributed, of which 173 healthy questionnaires were analyzed. The collected data from healthy questionnaires taken from previous studies were analyzed with warp-pls v7 software. The results showed that Market-Sensing Capability has a positive and significant effect on performance and organizational innovativeness. The mediating role of organizational innovativeness on the relationship between Market-Sensing Capability and performance was also acknowledged. Finally, the moderating role of market dynamics was assessed as positive and significant.