Gaining competitive advantage through corporate foresight value creation—The evidence from ASEAN automotive local affiliate companies

Abstract

Previous studies of corporate foresight in the automotive industry mainly focused on principal companies (PCs), while studies focusing on local affiliate companies (LACs) are limited, even though LACs play an essential role in dealing with local environmental dynamism. Therefore, this study aims to investigate corporate foresight in automotive LACs by analyzing the effect of corporate foresight on the creation of organizational value. The authors employed a quantitative method to analyze the theoretical hypotheses by involving nine LACs in ASEAN. The findings of this study indicate that corporate foresight activities in LACs have a significant positive effect on organizational learning capability, where they have an essential mediating role in enhancing the creation of organizational value in terms of ambidexterity and agility capability, which is a foundation for organizations to achieve a competitive advantage. The novelty of this study is the use of corporate foresight value creation framework in automotive LACs. The results of this study could assist managers and practitioners in automotive industry to better understand the benefit derived from the practice of implementing corporate foresight in LACs, and it is expected that this value creation could motivate these people further to enhance the practice of corporate foresight in LACs.