Foresight capabilities and SME product/service adaptiveness: the moderating effect of industry dynamism

This study empirically examines the impact of 'first-order' foresight capabilities on small and medium enterprise (SME) product/service adaptiveness (PSA). It further tests the moderating effect of environment dynamism (IND) on the associations between these first-order foresight capabilities and SME PSA. The results of the study have endorsed that foresight capabilities, specifically, environmental scanning, developing network ties, analysing, industry dynamics, and planning and visioning all have high level of direct impact on SMEs ability to strategically adapt their products or services to the market and customer needs. However, the results find no support for the interaction effect of industry dynamics on these associations. These findings contribute to the foresight and capabilities literature. Research and practical implications are discussed.