Playing the Innovation Game : Developing the Community Sensing Capability

Abstract: The remarkable growth of the video game industry has triggered an interest for the capabilities that video game companies need in order to seize opportunities in the market. Companies that continuously provide product innovations are arguably better equipped to succeed in the dynamic, digitized video game landscape. Market sensing capabilities have been brought forward as particularly useful in environments with these characteristics and research suggests that user communities could be critical sources of external knowledge for video game companies. Hence, the aim of this study is to provide a framework where these concepts are combined into a unified dynamic capability, Community Sensing Capability, and to quantitatively test its effect on product innovativeness. An interview-administered questionnaire was used to gather data, resulting in a sample of 72 observations. The capability builds on three different sub-processes; sensing, sensemaking and response. Reliable measurements were developed for Community Sensing Capability, sensing and response respectively. The regression analysis indicate that sensing and response are positively related to product innovativeness, while Community Sensing Capability is not significantly related. This study contributes to literature by shedding light on a new phenomenon and giving initial insights to how the Community Sensing Capability can be exploited in innovation processes.