Enhancing sensing capabilities in project-based organizations: the role of knowledge transfer between commercial and operational teams

• Dynamic Capabilities: PBOs enhance competitiveness through knowledge transfer between operational and commercial teams. • Opportunity Evaluation: Key factors include feasibility, risk, resources, sustainability, strategic alignment, and client history. • Team Integration: Communication and collaboration between teams improve sensing capabilities. • Learning Culture: Continuous learning and training investments boost organizational capabilities. • Structured Mechanisms: Software, platforms, and AI tools enhance knowledge transfer. In today’s rapidly evolving market landscape, the ability of project-based organizations to continuously adapt and sense opportunities is critical for maintaining competitiveness, yet it remains an under-theorized area. This study investigates how project-based organizations enhance their sensing capabilities through effective knowledge transfer between operational and commercial teams. Through a multiple case study of seven diverse project-based organizations, the research identifies key factors for evaluating business opportunities, such as financial and technical feasibility, risk assessments, resource availability, long-term sustainability, and strategic alignment. The study highlights the significance of integrating commercial and operational teams through formal and informal mechanisms, which enhances sensing capabilities and market responsiveness. It also emphasizes the importance of continuous learning and fostering a culture that encourages all employees to act as salespeople, driving innovation and competitiveness. The findings result in an innovative theoretical framework and four propositions, offering new insights into how knowledge transfer and sensing capabilities influence market interactions, which ultimately improves strategic planning and integration within project-based organizations.