Abstract
This development paper examines how formalised market intelligence (MI) interacts with informal new product development (NPD) processes in small firms. Through a longitudinal three-stage study of eleven firms, analysed through a dynamic capabilities lens, the study finds that informality is standard practice rather than a weakness in small firms. Rather than replacing gut-feel decision-making, formal MI functions primarily as a reassurance resource, integrated into existing informal processes. Over time, continued engagement with MI gradually strengthens sensing capabilities, with slower development in seizing and reconfiguring. The study argues for complementarity over replacement, demonstrating that dynamic capabilities can operate through informal routines. It contributes temporal evidence to capability development theory and offers crucial practical implications for policymakers supporting small firm NPD.