Business networking and sensing market opportunities and threats: Evidence from China
(A2019-8300)

AUTHORS

Herbert Endres, University of Regensburg; Dayuan Li, Central South University; Roland Helm, University of Regensburg

KEYWORDS

networking; China; sensing

ABSTRACT

The sensing capability, or a firm’s capability to recognize market opportunities and threats, is crucial for long-term sustainable competitiveness. Only little is known on the role of business networking and the moderating role of market-oriented perspectives in sensing. Further, few have examined Asian countries such as China in this context. This study uses survey data from the top managers of 228 Chinese firms to identify the influence of business networking on sensing capability under firms’ holistic macroeconomic view and customer orientation conditions. The results reveal that business networking has a J-shaped effect on sensing capability. Further, this study’s findings show a three-way interaction, which implies that the strength of the business networking-sensing capability association is significantly influenced when firms use a holistic macroeconomic view combined with a customer orientation.