The research title and central concepts including foresight and corporate foresight are explained below.
Foresight
Foresight is a vital issue for both public and private companies. To determine the stats of foresight in planning, one can recall Mintzberg’s calcification for strategic affairs. Mintzberg has divided strategic affairs to two groups of strategic planning (with an analytical, logic, comparative, and practical approach to realize the goals) and strategic thinking (with an inspirational, creative, and test-and-error approach to transcend the borders of logic and linear thinking). On this basis, foresight removes the need for strategic planning to strategic thinking and nonlinear creativity. However, such use does not mean to limit the role of foresight to a preliminary element of strategic management; instead, foresight (future study) has (exclusive) methods and tools which leads to the recommendation, prescription, and action. FORENFootnote 1 [18] attitude on foresight is considered as the significant definition of this study. However, one should note that various definitions altogether generate a fuller perception [18].
“Foresight is a structured process which gathers insight-making information on future in mid- and long-term horizons which targets today decisions and continuous progressive actions. Foresight emerges from the convergence of hidden trends in developing knowledge fields of policy analysis, strategic planning, and future study.”
In line with this study, the definition of foresight is a process of beneficiaries by aggregating knowledge on potential factors and trends that can impact on the industry in international level. Foresight is based on in-depth attitudes toward current trends in technology, demography, laws, and lifestyles which seems to play a vital role in future development of industry, its laws, and creation of new spaces for competitiveness. There are various classifications of foresight. Since the aim of this study is not foresight typology, this study pays more attention to corporate foresight process. Only the most general classification in organizational level namely corporate foresight is identified in this study.
Corporate foresight
Due to the multidimensional definition of corporate foresight, it is hard to use foresight at the corporate level. On the corporate level, success is mainly measured by such criteria as market share increase, productivity growth, and profitability. Additionally, companies are simultaneously involved in many projects, and they pursue a different level of success. Hence, researchers in corporate level neglect high diversity of foresight activities inside the companies and, instead, they focus on foresight development projects. The relevant literature on corporate foresight defines corporate foresight through different aspects that involve a range of innovation, technology, marketing, commerce, exploring investment opportunities, and temporal turning points in organizational growth.
The historical trend of corporate foresight in the view of Rohrbeck et al. [26] (Fig. 1).
Of the most recent developments in this field, one should point out the introduction of corporate foresight as an organizational capacity and capability raised by Slaughter and developed by Rohrbeck. In his book titled Toward corporate foresight mature model, Rohrbeck [25] provided a five-element model aimed at conceptualizing organizational capability [25, 30]. This model is a useful starting point for conceptualizing and empirical studying corporate foresight role in improving the performance of the firm. In recent years, this model is extended to a set of measurement scales and is used in different studies.
According to some scholars, corporate foresight is in the field of strategy and business economy [1]. However, others believe that corporate foresight is a part of a future study field. Future study field is used for all ranges of studies in individual, organizational, and governance levels.
According to Rohrbeck [25] who is among those connoisseurs that studied corporate foresight in the strategy field, corporate foresight is used to identify, observe, and interpret factors which stimulate changes. Corporate foresight is also utilized to determine different implications for the company and target proper reactions. Corporate foresight involves multiple stakeholders and leads into value generation through access to critical resources for superiority in competition, prepares the company for changes, and allows it to step forward desired future.
Corporate foresight increases environment conception through monitoring company’s business environment and acquiring a deep vision of environmental changes and the ability to reduce uncertainty [29].
Upon reviewing the literature on future study in the most recent 30 years, Rohrbeck and Bade [27] claimed that the starting point of future study paradigm in planning the companies under uncertainty condition is the need to move from prediction to identification of multiple likely futures. Multiple futures are used to plan flexible strategies, to improve strategic agility, and to evaluate strategy establishment in strategic management researchers.
Foresight in the view of the company under the title of strategic foresight has already been conducted [31]. Strategic foresight is defined by Slaughter [34] as the ability to look at future and to achieve a vision in the organization to form a strategy and to define new markets, products, and services [34].
Researchers on corporate foresight in the future study field are not mature enough, and they are mainly looking for theory building, not theory testing [25]. Hence, like another research field, there are different definitions for a field. In some definitions, organizational foresight is defined as a set of steps, activities, studies, methods, and capabilities [1, 25]. Corporate foresight is also defined as a process [5] and even the ability of a company in future recognition [1]. Most authors have defined corporate foresight as a future study methodology aimed at identifying successful methods and processes in organizational level [7, 33].
Corporate foresight aims to study potential changes and to reveal what may lead to systematic or fundamental changes in next 10–25 years (or even longer). Future study is not only economic hunches, sociological analyses, or prediction on technology field but also a multidisciplinary study on changes in all main fields of life. This study aims to study those forces that impact on each other and shape corporate future.
In this study, the definition of corporate foresight by Hojland and Rohrbeck [16] is considered.
A set of methods which support exploring new businesses through identifying stimulants or change conducting factors (conception), describing the consequences of stimulants both individually and collectively (discovery) and initiatives that permit valued choices and designing services, products and market admiration (exploration).
Corporate foresight capabilities
Corporate foresight concept relates to different concepts discussed by experts. They include environmental analysis [9], weak signal [3], sense-making [8], and so on. On this basis, various advantages and capabilities are mentioned for corporate foresight including the following: the ability of identifying and interpreting environmental changes [36]; strategic management processes improvement, growing innovation capabilities, and improving organizational learning ability [28, 38]; and implementing strategic decisions [29].
These can be used in big companies and SMEs and in different economic sections. In fact, one can consider them relevant to “dynamic capabilities” introduced by Teece et al. [35].
Considering above points, one can divide these capabilities into two external (capabilities related to environmental search and analysis) and internal (capabilities related to receive information and how to use them) aspects.
External aspect
By studying references, corporate foresight is mainly seen as the process of external environmental information collection, interpretation, and utilization [17] or “future intelligence gathering process” [7]. For horizon scanning, companies use different methods provided by various experts.
Another concept emphasized in external aspect is to identify and analyze signals especially weak ones to combat unexpected events [3]. Strategic foresight is to use the capabilities of weak signals to recognize external changes in environment before encountering a crisis [3, 25]. However, one should say that talking about signals and resources of receiving them would not give much information about them rather they facilitate distribution of new ideas due to personal differences. According to Batsital and Tony, one should develop each external network in order to have different information resources.
Internal aspect
In the second step, companies need the capability of transferring, discovering, and utilizing environmental information and smart collection of future information from different resources. Such attitude is taken from resource-based approach which looks for achieving intra-organizational value.
While the search ability leads into increasing future-related information flow, huge amount of information is lost inside the organization in a decision-making process. Therefore, companies need organizational reliable capabilities and trends to diagnose new external information value and to attract and use information for commercial goals in order to use such resources.
In organizational learning literature, such capability was coined by Cohen and Levinthal [6] as the ability of attraction. On this basis, three attraction factors are introduced: management-positive attitude toward external resources, broad perspective, long-term thinking, and risk taking; cultural ability to share and communicate the activities and to disseminate knowledge as a strong internal source; and knowledge-based company by which employees diagnose the value of new information and how to use it.
Implementing strategic foresight can be too different in organizations. Such differences depend on environment and company’s vision [8]. Therefore, various foresight maturity models are provided by authors like Rohrbeck and Grim [13, 25]. In these models, upon investigating the status the company and determining foresight, maturity can be planned in any organization differently to develop foresight capabilities.
In addition to the above two models, 7S model is also provided to analyze organization’s current status as well as future proposed situation and to diagnose the insufficiencies.