Integrating Market Sensing, Digital Logistics, and Green Operations: A Dynamic Capabilities Perspective on Superior Business Performance

Abstract

Firms today face turbulent markets, rapid digital advancements, and intensifying sustainability pressures. This conceptual paper, grounded in Dynamic Capabilities Theory (DCT), proposes a triadic framework integrating market sensing, digital logistics, and green operations as mutually reinforcing capabilities that enhance business performance. Market sensing is positioned as the foundational sensing mechanism that enables firms to identify shifts in customer needs, technologies, and environmental expectations. Digital
logistics serves as the seizing capability that operationalizes these insights through data driven and interconnected supply chain processes. Green operations represent the transforming capability that reconfigures routines toward ecological efficiency, compliance, and sustainable value creation. The framework demonstrates how these capabilities interact to strengthen responsiveness, operational efficiency, environmental performance, and financial outcomes. The paper further offers theoretical propositions, outlines strategic implications for capability development and cross functional integration, and presents a research agenda for future empirical examination.