Investigating firm's customer agility and firm performance: The importance of aligning sense and respond capabilities

In today's hypercompetitive environment, firms that are agile tend to be more successful. However, despite the widely accepted importance of agility, there is limited research on this construct. In this study we aim to conceptually define and operationalize firm's customer agility. We propose that agility comprises two distinct capabilities, sensing and responding, and we address the issue of alignment between these capabilities and its impact on performance. Using a dynamic capabilities framework, we formulate both matching and mediating perspectives on customer agility. Based on data collected from marketing managers, we tested hypotheses pertaining to the two methods of alignment. The results indicate significant support for the role of both forms of alignment on performance. Implications for research and practice are discussed.