Previous studies have found that technology commercialization intelligence significantly

positively affects new product and technology commercialization performance

(e.g. Brown and Eisenhardt, 1995, Kahn, 2001). Firms can reduce technology market
transaction cost by developing the dynamic capability of identifying market
opportunities in technology transfer (Cohen & Levinthal, 1990). Market sensing
capability also strongly supports firm innovation performance. Early identification of
market fluctuation and change generates opportunities for firms, enabling them to
hasten the patent commercialization process (Jolly, 1997).
Lindblom, Olkkonen, Mitronen, and Kajalo (2008) found that entrepreneurs' market
sensing capability correlates positively but weakly with the firm's growth, and that it is
not statistically significantly related to profitability; therefore, they suggested that
sensing capability may have a moderating rather than a direct effect on organizational
performance. Morgan, Slotegraaf, and Vorhies (2009) demonstrated that market sensing
capabilities have no significant direct effect on firm revenue, margin, and profit growth
rate, but synergistically affect brand management capability in influencing revenue
growth rate. Their findings support arguments that superior market knowledge possibly
resulting from strong market sensing capabilities offers the greatest value in determining
firm's performance by indirectly influencing value selection, creation, and delivery
processes (e.g., Hult et al., 2005, Morgan et al., 2003). These discussions explain market
sensing capability's indirect influence on firm performance.