Strategic Sensitivity and Competitive Advantage

Abstract

Strategic sensitivity is increasingly recognized as a crucial factor in gaining and sustaining competitive advantage by enabling organizations to effectively perceive, interpret, and respond to environmental changes. This study examined the influence of strategic sensitivity on competitive advantage, leveraging Dynamic Capability Theory and Resource-Based View (RBV) Theory to provide a theoretical foundation. The study’s objectives are to analyze how strategic sensitivity impacts stakeholder engagement, competitive intelligence, and organizational learning, and to determine how these factors contribute to competitive advantage. Drawing on research such as Banks et al. (2016) and Husted & Allen (2010) for stakeholder management, Gupta et al. (2020) and Taranu (2023) for competitive intelligence, and Zhang et al. (2023) and Inthavong et al. (2023) for organizational learning, the study identified significant gaps in understanding the direct effects of strategic sensitivity across different industries and contexts. Although existing literature underscores the individual importance of stakeholder management, competitive intelligence, and organizational learning, there is limited exploration of how strategic sensitivity integrates these domains cohesively. Additionally, there is a need for longitudinal research to assess how strategic sensitivity and its impact on competitive advantage evolve over time. By integrating Dynamic Capability Theory and RBV Theory, this study aimed to offer a comprehensive framework for understanding how strategic sensitivity functions as a critical driver of competitive advantage, providing actionable insights for organizations operating in dynamic and complex business environments.