Short answer
Invest in and systematically apply corporate foresight practices to build a future-ready organization that can achieve superior market performance.
- Field
- Innovation & Markets
- Source
- Technological Forecasting and Social Change (2018)
- Method
- Longitudinal quantitative analysis
- Evidence
- Strong effect
Firms with a high degree of 'future preparedness,' achieved through robust corporate foresight practices, are significantly more likely to outperform competitors in terms of profitability and market capitalization growth over a seven-year period. This innovation & markets research insight is drawn from a 2018 study published in Technological Forecasting and Social Change. Using Longitudinal quantitative analysis, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Invest in and systematically apply corporate foresight practices to build a future-ready organization that can achieve superior market performance.
Proactive Foresight Practices Drive Long-Term Market Outperformance
Firms with a high degree of 'future preparedness,' achieved through robust corporate foresight practices, are significantly more likely to outperform competitors in terms of profitability and market capitalization growth over a seven-year period.
Technological Forecasting and Social Change · 2018
Key Findings
- 01Future preparedness is a strong predictor of becoming an industry outperformer.
- 02Future preparedness positively correlates with superior profitability.
- 03Future preparedness is linked to superior market capitalization growth.
Application
Design takeaway
Invest in and systematically apply corporate foresight practices to build a future-ready organization that can achieve superior market performance.
How to apply
Establish a dedicated foresight function or integrate foresight activities into existing strategic planning processes, focusing on developing actionable insights from future scenarios.
Project actions
- 01When researching a company or product, consider its long-term vision and how it prepares for future changes.
- 02Use foresight techniques like scenario planning to explore potential futures for your design project.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Longitudinal research design allows for the observation of cause-and-effect relationships over time.
- +Empirical testing of a theoretical model provides quantitative evidence for the impact of corporate foresight.
Limitations
It can be challenging to accurately measure 'future preparedness' and isolate its impact from other business factors.
Reliability & validity
The use of a longitudinal design and a specific model for 'future preparedness' contributes to the study's reliability and validity, though the measurement of foresight maturity might introduce some subjectivity.
Think critically
To what extent can 'future preparedness' be objectively measured, and what are the potential confounding factors that might influence firm performance besides foresight practices?
Design Principles
"Strategic foresight is a critical driver of sustained competitive advantage and financial success."
This research highlights the tangible financial benefits of investing in strategic foresight. By anticipating future trends and challenges, design-driven organizations can proactively shape their product roadmaps, market strategies, and resource allocation, leading to sustained competitive advantage.
What This Means for Your Design
Companies that think about the future and plan for it tend to make more money and grow bigger than those that don't.
How to use in your project
- 1.Reference this study when discussing the strategic importance of your design choices and how they might contribute to a company's future performance.
Add to My Project
Quick Cite
Paragraph starter
The research by Rohrbeck and Kum (2018) demonstrates a strong correlation between a firm's 'future preparedness,' achieved through corporate foresight, and its subsequent long-term market outperformance, including superior profitability and market capitalization growth. This underscores the strategic importance of integrating forward-looking analysis into design and business planning to ensure sustained competitive advantage.
Source
Technological Forecasting and Social Change
Corporate foresight and its impact on firm performance: A longitudinal analysis
journal · 2018
View sourceQuestions About This Research
- What does the research say about proactive foresight practices drive long-term market outperformance?
- Invest in and systematically apply corporate foresight practices to build a future-ready organization that can achieve superior market performance. Evidence: Technological Forecasting and Social Change (2018).
- Why does "Proactive Foresight Practices Drive Long-Term Market Outperformance" matter for design?
- This research highlights the tangible financial benefits of investing in strategic foresight. By anticipating future trends and challenges, design-driven organizations can proactively shape their product roadmaps, market strategies, and resource allocation, leading to sustained competitive advantage.
- How can designers apply this research?
- Invest in and systematically apply corporate foresight practices to build a future-ready organization that can achieve superior market performance.
- What were the main findings?
- Future preparedness is a strong predictor of becoming an industry outperformer.. Future preparedness positively correlates with superior profitability.. Future preparedness is linked to superior market capitalization growth.
- What research method was used?
- Longitudinal quantitative analysis.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2018 journal from Technological Forecasting and Social Change.
- What should I do differently in my next project?
- Establish a dedicated foresight function or integrate foresight activities into existing strategic planning processes, focusing on developing actionable insights from future scenarios.
- What are the limitations?
- The study's findings are based on a specific time frame and may not fully account for all external market dynamics or the nuances of different industry sectors.