Entrepreneurial orientation, new product development and firm performance: the moderating role of legitimacy in Chinese high-tech SMEs

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yunqing Liu ◽  
Min Wang
Keyword(s):  
Firm Performance ◽  
Product Development ◽  
New Product Development ◽  
Entrepreneurial Orientation ◽  
Transition Economy ◽  
New Product ◽  
High Tech ◽  
Content Type ◽  
The Relationship

PurposeThis paper examines the relationship of entrepreneurial orientation (EO), new product development (NPD), legitimacy (political and market) and firm performance (FP). The authors investigate how and when EO improves FP in high-tech small and medium-size enterprises (SMEs).Design/methodology/approachThe paper formulates 5 hypotheses from literature review and theoretical deduction. The hypotheses are tested using ordinary least squares (OLS) regression with data collected from 219 randomly selected SMEs operating in high-tech industries of China.FindingsThe findings show that the mechanism of EO improve FP in high-tech SMEs by considering NPD as a mediator and legitimacy as moderators: (1) NPD plays a mediating role in the relationship between EO and FP, (2) market legitimacy (ML) positively moderating the effect of EO on FP and (3) both political legitimacy (PL) and ML positively moderating the effect of NPD on FP.Research limitations/implicationsFor the limitations, the firms the authors’ surveyed are SMEs that are not listed companies, which cause some limitations. For the implications, the authors propose some recommendations based on the findings to help Chinese SMEs to enhance performance.Originality/valueThe existing research on EO–FP linkage remains elusive findings. The paper reconciled the inconsistency by providing a nuanced mechanism of how EO promotes FP in high-tech SMEs of Chinese transition economy. By explain the important role of NPD in high-tech SMEs, the findings shed light on the mediators between EO and FP and the moderators. By emphasize the different role of ML and PL in determining EO–FP and NPD–FP linkages, the findings illustrate the peculiarity of contingency factors in a transition economy.

The mediation effects of team information processing on new product development success: revising the role of innovation orientation and team unlearning

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Adriana Andrea Amaya ◽  
Wann-Yih Wu ◽  
Ying-Kai Liao
Keyword(s):  
Information Processing ◽  
Product Development ◽  
New Product Development ◽  
New Product ◽  
Underlying Mechanism ◽  
High Tech ◽  
Mediation Effects ◽  
Content Type ◽  
Processing Theory

PurposeAlthough previous studies noted the importance for organizations in establishing an innovation strategy, few have examined innovation orientation as a multidimensional knowledge configuration. Therefore, this study draws on the valuable theoretical underpinnings of the resource-based view and information processing theory to examine the mechanism through which an organization's innovation orientation (IO) and team unlearning (TU) can impact new product development (NPD) success.Design/methodology/approachA causal model was developed in order to analyze the role of innovation orientation and team unlearning on NPD success. This proposed model and several hypotheses were gauged using data from 255 NPD team members from Taiwanese high-tech and traditional companies.FindingsThe results indicate that both IO and TU relate to outcomes. Specifically, this study demonstrates that it is insufficient that firms simply establish the configurations needed to enhance their IO and TU, firms also need to find out the correct mechanism to enhance NPD success. The relationships between IO, TU and NPD success were fully mediated by team information processing.Originality/valueThis report sheds light on the importance of innovation orientation and team unlearning in today's NPD process and uncovers the underlying mechanism through which IO and TU contribute to NPD success. It also offers precise advice for the assessment of management of team information-processing to boost the performance of new products.

Internationalization, dynamic environments and new product development

2017 ◽  
Vol 21 (3) ◽  
pp. 224-255
Author(s):  
Keon Bong Lee ◽  
Suk Bong Choi
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Positive Impact ◽  
New Product ◽  
International Market ◽  
Dynamic Environments ◽  
Content Type ◽  
The One ◽  
The Relationship

Purpose The purpose of this paper is to explore when and how Korean firms learn from internationalization to develop new competencies to serve an international market. Design/methodology/approach This study adopted a contingency perspective to examine the relationship between organizational coordination and organizational implementation capabilities. A conceptual framework was tested based on data obtained from Korean firms. Findings The results suggested a discrepancy between the direct and indirect influences of internationalization. On the one hand, there is an inverted U-shaped pattern in the direct relationship between internationalization and organizational implementation capabilities; that is, high levels of internationalization may reduce organizational implementation capabilities. On the other hand, the evidence for a U-shaped moderation suggests that high levels of internationalization can help a firm become capable of amplifying the value of cross-functional coordination in organizational implementation capabilities. In addition, technological changes weaken the positive impact of organizational coordination on organizational implementation capabilities. Research limitations/implications Empirical research on the role of internationalization and dynamic environments in the context of new product development (NPD) affirms the importance of testing the curvilinear moderation beyond a linear two-way interaction. Practical implications The present study offers insights into the importance of high levels of internationalization in enabling Korean firms to create effective cross-functional coordination to serve an international market with new products. Originality/value This is the first review focusing on the role of internationalization in NPD.

Differential leadership, team conflict and new product development performance

2016 ◽  
Vol 10 (3) ◽  
pp. 544-558 ◽  
Author(s):  
Jianming Zhou ◽  
Shuo Liu ◽  
Xinsheng Zhang ◽  
Ming Chen
Keyword(s):  
Product Development ◽  
New Product Development ◽  
New Product ◽  
Task Conflict ◽  
Relationship Conflict ◽  
High Tech ◽  
Content Type ◽  
Team Conflict ◽  
Team Task ◽  
The Relationship

Purpose The purpose of this paper is to investigate the impact of native Chinese R&D team directors’ differential leadership on team performance, so as to understand whether and how the directors’ differential leadership impacts team conflict, whether and how team conflict impacts new product development performance of the R&D team and whether team conflict plays full mediation on the relationship between directors’ differential leadership and new product development performance. Design/methodology/approach A literature review on differential leadership and team conflict provided the model and hypothesis. Two-wave data collected from 103 directors and 344 subordinates from 103 R&D teams of high-tech enterprises from China’s Pearl River Delta Area were used as empirical study samples. Hierarchical multiple regression analysis was conducted to test the model and hypothesis. Findings First, the team director’s differential leadership would cause significant team relationship conflict and team task conflict in the R&D team. Second, team relationship conflict and team task conflict would produce significantly bad new product development performance in the R&D team. Third, team relationship conflict would significantly mediate the relationship between the team director’s differential leadership and the team’s new product development performance. Research limitations/implications To yield broader conclusions and to show to that the results can be replicated in other areas or in other types of organizations, further empirical research should expand the sampling by choosing high-tech enterprises from Beijing and Shanghai that have strong innovative abilities. Moreover, to extend the differential leadership theory, few more related variables of consequences, such as team communication, team cooperation and team knowledge share, should be included in future studies. Practical implications In general, the native Chinese R&D department director needs to try their best to avoid the use of differential leadership style. In addition, reasonable incentive measures, promotion mechanisms and fair team work culture are needed so as to reduce the negative impact from the director’s differential leadership. Originality/value The paper is original in its investigation on how Chinese indigenous organizational factor – differential leadership – influences the R&D team’s conflict and new product development performance, and provides theoretical contribution and managerial implications for the R&D team management.

Improving new product development performance by risk management

2016 ◽  
Vol 31 (3) ◽  
pp. 418-425 ◽  
Author(s):  
Mehran Salavati ◽  
Milad Tuyserkani ◽  
Seyyede Anahita Mousavi ◽  
Nafiseh Falahi ◽  
Farshid Abdi
Keyword(s):  
Risk Management ◽  
Product Development ◽  
New Product Development ◽  
Small Sample Size ◽  
New Product ◽  
Small Sample ◽  
Content Type ◽  
Total Performance ◽  
The Relationship ◽  
Npd Performance

Purpose The principal aim of this study is to investigate the relationship between technological, marketing, organizational and commercialization risk management on new product development (NPD) performance. Design/methodology/approach Based on questionnaire, the data were collected from a sample of general automotive industry in Iran. Based on theoretical considerations, a model was proposed and descriptive statistic and hierarchical regression were used to measure the relationship between risk management factors and NPD performance. Findings Data analysis revealed that if organization can amplify their knowledge and information about risk and main factors that affect NPD process, not only can they do their work better but can also increase their ability to predict future happenings that affect performance. Research limitations/implications First, due to the relatively small sample size, caution should be exercised when interpreting the results. Second, the data were collected from automotive producer in Iran, which may restrict to some extent generalizability of the findings. Practical implications The results suggest that managers should consider more attention to risk management. If managers spread the risk management in all aspects of the NPD project, total performance will be increased and it can develop the probability of NPD success. Also organizations should perform great market research due to best commercialization. Originality/value Past researches have presented complete information about NPD process. But identifying and considering the effect of the risk management parameters that are connected to the NPD process were the main thrusts to perform the study. In this paper, based on past research about risk management of NPD, the extra aspect of process that can improve total performance of NPD has been examined.

The effects of social capital on knowledge heterogeneity

2019 ◽  
Vol 57 (5) ◽  
pp. 1237-1253 ◽  
Author(s):  
Fu-Sheng Tsai ◽  
I-Chieh Hsu
Keyword(s):  
Social Capital ◽  
New Product Development ◽  
New Product ◽  
Shared Vision ◽  
Three Dimensions ◽  
Content Type ◽  
Negative Impacts ◽  
The Relationship ◽  
Epistemological Dimension

Purpose The purpose of this paper is to examine the influences of social capital on knowledge heterogeneity in order to advance the understanding of the effects and to reconcile existing inconsistent findings. Design/methodology/approach Survey data collected from 105 new product development (NPD) projects were analyzed with regression-based methods. Findings The results indicated that trust, centralization and shared vision as the three social capital dimensions generally have negative impacts on the domain and presentation dimensions of knowledge heterogeneity. However, the three dimensions of social capital do not exhibit consistent influences on the tacitness heterogeneity (i.e. an epistemological dimension of knowledge heterogeneity). Research limitations/implications More research is needed to explore the role of social capital dimensions in developing a range of knowledge attributes of NPD teams, among which knowledge heterogeneity is one. The various dimensions of knowledge an NPD team possesses should have performance implications and deserve future investigation. Originality/value The study is one of the first documented attempts to demonstrate contingencies in the relationship between social capital and knowledge heterogeneity. The effect of social capital on knowledge heterogeneity should be understood at the level of dimensions of the two respective constructs.

Role of supplier involvement and project leader in SNPD: a conceptual model and exploratory case study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuan Wang ◽  
Jie Yang
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Leadership Style ◽  
Project Leader ◽  
Content Type ◽  
Effective Leaders ◽  
Supplier Involvement ◽  
Sustainable Product Development ◽  
The Relationship

PurposeThis paper focusses on the factors to sustainable product development (SNPD) projects success. More specifically, it aims to explore and understand the role of supplier involvement (SI) within SNPD. Additionally, it investigates how effective project leaders can facilitate effective supplier involvement and enhance focal firm's ability to successfully carry out sustainable achievement in product development.Design/methodology/approachA theoretical framework among SI, SNPD, project leader's personality and leadership style has been established. Six interviews collected from different industries are used to further explore the relationship among SI, SNPD, leader's personality and leadership style.FindingsThe difficulties in managing suppliers, the timing and extent of supplier involvement, communication method and frequency, as well as supplier contribution and challenge in SNPD has been summarized. The interviews also confirmed that effective leaders who possess certain personality traits enable appropriate supplier involvement, promote prosperous SNPD and enhance the relationship between SI and SNPD performance by allowing individual members, teams and organizations to function well.Originality/valueSustainable new product development (SNPD) has been recognized as one of the key factors to achieve environmental and economic success. The paper explores the role of supplier involvement in SNPD project and emphasizes the role of project leaders in the process.

Platform Strategy for New Product Development

2020 ◽  
pp. 123-143
Author(s):  
Sang-Wuk Ku
Keyword(s):  
Product Development ◽  
New Product Development ◽  
New Product ◽  
Mediating Effect ◽  
Hierarchical Regression ◽  
Product Platform ◽  
Mediating Role ◽  
Platform Leadership ◽  
The Relationship

This chapter proves the mediating effect of product platform strategies on the relationship between a firm's subject, environment, and resources and the performance of new product development in the perspective of platform leadership. The author analyzed the mediating role of product platform strategy by considering CEO propensity, competition and customers, and competitiveness of retained resources. Compared to the past, in the perspective of platform leadership, the product platform strategy has a critical effect on the relationship between the business scope of a platform leader, the external relationship with complementors, and the internal organization of a platform leader impact on the performance of new product development. As a result of hierarchical regression analysis with the data of Korean high technology companies, the product platform strategy would be mediating the relationship between the antecedents such as CEO propensity, competition and customers, and competitiveness of retained resources and NPD performance.

How organizational structure and strategic alignment influence new product success

2020 ◽  
Vol 58 (1) ◽  
pp. 182-200
Author(s):  
Yung-Chang Hsiao ◽  
Ming-Ho Wu
Keyword(s):  
New Product Development ◽  
Information Service ◽  
New Product ◽  
Product Performance ◽  
Curvilinear Relationship ◽  
Content Type ◽  
Product Success ◽  
New Product Performance ◽  
The Relationship

Purpose The purpose of this paper is to review and re-examine the role of the organization-level determinants from the perspectives of competence-based views. Design/methodology/approach Regression analysis was used to test the hypotheses in a sample of 80 cases drawn from a population of the top 5,000 Taiwanese firms listed in the yearbook published by the China Credit Information Service Incorporation. Findings The empirical results indicate that formalization is positively related to new product performance while decentralization has an inverse U-shaped curvilinear effect on new product performance. Furthermore, the regression findings also indicate that market-oriented strategy negatively moderates the relationship between formalization and new product performance, while technology-oriented strategy positively moderates the curvilinear relationship between decentralization and new product performance. Originality/value Extant literatures have paid attention to investigating the determinants to the performance of the new product development, but some of the results, such as in the organizational levels, are confusing and mixed. Contrary to previous works, the purpose of this paper is to review and re-examine the role of the organization levels determinants from the perspectives of competence-based view.

scholarly journals Government institutional support, entrepreneurial orientation, strategic renewal, and firm performance in transitional China

2019 ◽  
Vol 25 (3) ◽  
pp. 433-456 ◽  
Author(s):  
Chengli Shu ◽  
Dirk De Clercq ◽  
Yunyue Zhou ◽  
Cuijuan Liu
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Entrepreneurial Orientation ◽  
Transition Economy ◽  
Institutional Support ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Renewal ◽  
Firm Financial Performance ◽  
The Relationship

PurposeThe purpose of this paper is to examine how entrepreneurial orientation (EO) and strategic renewal (as a critical dimension of corporate entrepreneurship) might transmit government institutional support and thereby enhance firm performance in a transition economy.Design/methodology/approachMulti-respondent data were collected from 230 Chinese-based firms. The hypotheses were tested with structural equation modeling, in combination with a bias-corrected bootstrap method, to assess the significance of the theorized direct and indirect relationships.FindingsGovernment institutional support enhances EO and strategic renewal individually, yet EO also fully mediates the relationship between government institutional support and strategic renewal. Moreover, strategic renewal fully mediates the relationship between EO and firm financial performance, and it partially mediates the relationship between EO and firm reputation.Originality/valueThis study contributes to entrepreneurship literature by testing an organization-level model of entrepreneurial phenomena in established firms that identifies EO and strategic renewal as two distinct mechanisms through which government institutional support in a transition economy can enhance organizational effectiveness, which entails the firm’s financial performance and reputation. In doing so, this study provides an extended understanding of how EO and strategic renewal might influence a firm’s financial and nonfinancial outcomes in different ways.

The role of internationalization in entrepreneurial orientation-performance link: empirical study of SMEs in a developing nation perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zaynab Dadzie ◽  
Ahmed Agyapong ◽  
Abdulai Suglo
Keyword(s):  
Firm Performance ◽  
Empirical Study ◽  
Entrepreneurial Orientation ◽  
Developing Nation ◽  
Content Type ◽  
Mediating Role ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine the mediating role of internationalization in the relationship between the dimensions of entrepreneurial orientation (EO) and performance, empirical study of small and medium scale enterprises (SMEs) in a developing nation. Design/methodology/approach The study uses a sample of 158 exporting SMEs based in the sub-Saharan developing economy, Ghana. The use of hierarchical regression (ordinary least square analysis) was used by the researcher to assess the suggested model of the study. Findings Largely supporting the conjectural predictions, the study indicates that EO positively and significantly influences performance; internationalization fully mediates the relationship between innovativeness and performance of export firms; internationalization fully mediates the relationship between risk-taking and performance of export firms; and finally, internationalization partially mediates the relationship between competitive aggressiveness and performance of export firms. Managers are, therefore, encouraged to strategically develop both their EO and internationalization, as the study has confirmed that EO has both a direct and indirect relationship with performance. Originality/value This study integrated a resource-based view of the firm and international entrepreneurship theory as a theoretical foundation. Theoretically, internationalization’s mediating role reveals the relevance of this construct in the linkage between entrepreneurial orientation and firm performance. Furthermore, the study extends the entrepreneurial orientation concept to the international business literature by estimating and testing models of the mediating link between entrepreneurial orientation and performance. Moreover, the study seeks to broaden the knowledge of entrepreneurial orientation and its relationship with performance in small and medium businesses. The study further extends the limited studies on performance, driven by entrepreneurial orientation and internationalization in a developing nation (Ghanaian) context. This paper besides seeks to highlight the impact of entrepreneurial orientation on performance when channeled through internationalization. The study also reveals the dimensions of entrepreneurial orientation to be important antecedents of internationalization, in attempts at unearthing the critical predictors of firm performance, especially those of international characteristics.

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