scholarly journals When is entrepreneurial orientation beneficial for new product performance? The roles of ambidexterity and market turbulence

Author(s):  
Shuangfa Huang ◽  
David Pickernell ◽  
Martina Battisti ◽  
Danny Soetanto ◽  
Qihai Huang

PurposeEntrepreneurial orientation (EO) is an exploratory orientation because its dimensions such as innovativeness, proactiveness and risk-taking are the essence of exploration that entails uncertain returns. While literature suggests firms might need to counterbalance and complement EO with another orientation for organisational success, research on this area remains limited. Drawing on organisational learning theory, the purpose of this article is to explore whether and how the EO dimensions and organisational ambidexterity complement each other to enhance new product performance. More specifically, the authors explore the configurations of innovativeness, proactiveness, risk-taking and ambidexterity for superior new product performance under different levels of market turbulence.Design/methodology/approachBased on a configurational perspective, the authors applied fuzzy set qualitative comparative analysis (fsQCA) on a sample of 88 small and medium-sized firms from the UK. Using fsQCA allows the authors to uncover the potential complementary role between the EO dimensions and ambidexterity for superior new product performance.FindingsThe results of this paper reveal three configurations that are sufficient to produce superior new product performance. The results suggest that the EO dimensions and ambidexterity can complement each other to enhance new product performance. Further, under the turbulent market environment, the EO dimensions are also sufficient to produce superior new product performance.Originality/valueBy adopting a configurational perspective using fsQCA, the study provides a more holistic understanding of how the EO dimensions work together to influence new product performance. It also contributes to the literature by uncovering the complementary role of the EO dimensions and ambidexterity in shaping new product performance.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Civilai Leckie ◽  
Heath McDonald

Purpose This study aims to investigate whether an organization that is entrepreneurial oriented can benefit from having a formal control structure and process in new product development (NPD). This study investigates two well-known control mechanisms in NPD, namely, stage-gate system (SGS) and project management (PM), as well as decision-making comprehensiveness (DMC), reflecting the amount of information processing and investigative activities undertaken. Design/methodology/approach Survey data were collected from 238 Australian small and medium enterprises. Structural equation modeling was used to test the hypotheses. Findings The findings of this study suggest that entrepreneurial orientation (EO) directly impacts new product performance and indirectly does so through DMC. While both control mechanisms positively impact DMC, they affect the EO–DMC relationship differently. While SGS positively moderates the EO–DMC relationship, PM negatively does so. However, the use of SGS and PM enhances the effect of EO on DMC. Practical implications This research provides managers with insights into the design of structure and process in NPD to support interfunctional coordination and firm strategy. The findings of this study suggest that managers should be amenable to the application of control mechanisms and DMC. The calibration of the right mix of control systems is required to ensure that EO can contribute to decision-making in the NPD process. Originality/value On the surface, the implementation of EO requires flexibility while the control mechanisms and extensive information processing are seen as restricted structures for NPD activities. However, rather than viewing EO and control structure as counterintuitive elements in NPD, the results suggest that appropriate use of control structure can support organizational strategy and decision-making activities, which subsequently enhance NPD outcomes.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jianhui Yan ◽  
Yu Zheng ◽  
Jiaxin Bao ◽  
Chongyu Lu ◽  
Yanhui Jiang ◽  
...  

Purpose This paper aims to investigate how to improve new product performance in turbulent circumstances of emerging economies. Design/methodology/approach This paper used regression analysis to examine the performance impact of customer relationship management (CRM) and product development management (PDM) concentration strategy in new product development (NPD). A detailed contingent analysis of the market and institutional environments in emerging economies is also conducted based on a survey of 114 Chinese high-tech manufacturers. Findings The research findings show that PDM has a stronger positive effect on new product performance than CRM in emerging economies and that the contingent effects of the market and institutional environment vary. More specifically, technological turbulence and enforcement inefficiency can positively moderate the relationship between CRM and new product performance, whereas the moderating effect of market turbulence on CRM is negative. Meanwhile, enforcement inefficiency negatively moderates the effect of PDM on new product performance, while the moderating effect of market turbulence on PDM is positive. Research limitations/implications This paper is limited to a survey of high-tech manufacturing enterprises in China. Further research should continues to explore and document the strategic issue about NPD in emerging economies by longitudinal study. Originality/value This paper contributed to theoretical and practical initiatives on the strategic issue of NPD and provided firms a further understanding of how to select the right NPD strategy in emerging economies to improve new product performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuanyuan Jiao ◽  
Yepeng Wu ◽  
Linna Hao

Purpose This study aims to investigate the antecedents of design crowdsourcing decision-making, the impact of design crowdsourcing on new product performance and the moderating effect of network connectivity. Design/methodology/approach The sample (n = 104) was collected from a leading social product development website; the fuzzy-set qualitative comparative analysis and two-stage least square methods were used in the investigation. Findings Three design attribute feature configurations (rational, emotional and kinesthetic value configurations) are conducive to firms’ adoption of design crowdsourcing and there are two configurations in which firms do not adopt design crowdsourcing. Design crowdsourcing influences new product performance positively. Network connectivity has an inverted U-shaped effect on the relationship between design crowdsourcing and new product performance. Originality/value These findings not only enrich crowdsourcing and social network studies but also guide crowdsourcing firms to better manage their processes and community members.


2020 ◽  
Vol 58 (1) ◽  
pp. 182-200
Author(s):  
Yung-Chang Hsiao ◽  
Ming-Ho Wu

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.


2014 ◽  
Vol 21 (1) ◽  
pp. 49-68 ◽  
Author(s):  
Brian Healy ◽  
Ann Ledwith ◽  
Michele O'Dwyer

Purpose – This paper aims to extend previous studies on new product development (NPD) performance by identifying the product advantage, new product performance and organisational performance indicators that are considered by small and medium-sized firms (SMEs) to be most relevant to their performance. Design/methodology/approach – A quantitative research approach was adopted, using a cross-sectional survey of a sample of 137 firms representing the industry sectors active within the Irish economy. The research instrument was based on existing recognised research measures. Findings – The results suggest that: large firms consider that their products derive advantage through product quality and cost, while SMEs are more concerned with satisfying customer needs; larger firms concentrate on market measures in measuring new product performance, while SMEs focus on customer acceptance measures; and in measuring organisational performance larger firms focus on market share and profitability, while SMEs concentrate on profitability and sales growth. Research limitations/implications – This study identifies the aspects of product advantage, new product performance and organisational performance on which firms concentrate, thereby increasing our ability to redirect their focus from what they consider to be important, to what will have an impact on their firm's performance. Originality/value – This study identifies the aspects of product advantage, new product performance and organisational performance on which firms concentrate, thereby increasing our ability to redirect their focus from what they consider to be important, to what will have an impact on their firm's performance.


2016 ◽  
Vol 116 (8) ◽  
pp. 1700-1718 ◽  
Author(s):  
Taiwen Feng ◽  
Di Cai ◽  
Zhenglin Zhang ◽  
Bing Liu

Purpose The purpose of this paper is to examine the joint influence of technological newness (TN) and market newness (MN) on the relationship between customer involvement (CI) and new product performance. Design/methodology/approach The authors employed hierarchical moderated regression analysis to test the hypothesized relationships using survey data collected from 214 Chinese manufacturing firms. Findings The authors found that the impact of CI on new product performance varies across the different configurations of TN and MN. Specifically, the performance effect of CI is most positive under low TN and high MN, while the performance effect is least positive under low TN and low MN. Originality/value This study enriches CI research by identifying different configurations of product innovativeness that augment or limit the value of CI.


2015 ◽  
Vol 30 (1) ◽  
pp. 60-71 ◽  
Author(s):  
Aron O'Cass ◽  
Nima Heirati

Purpose – This study aims to address the extent that the deployment of and complementarity between marketing mix and customer-focused (brand management, and customer relationship management) capabilities provide firms the capacity to transform their market knowledge into effective responsive actions that help to achieve new product success. Design/methodology/approach – A questionnaire was used as the primary means of data collection. Data from 160 large business-to-business firms across a variety of industries in Iran were analyzed using partial least squares regression to test the hypothesized paths. Findings – The results show that market-oriented firms are better at deploying marketing mix, brand management and customer relationship management capabilities, and these capabilities help to drive new product performance, and the complementarity between these marketing capabilities enhances the firm’s capacity to achieve new product success more than deploying each capability in isolation. Originality/value – In contrast to many existing studies, this study is the first to examine the role of marketing mix, brand management and customer relationship management capabilities and their complementarity as intervening mechanisms in the relationship between market orientation (MO) and new product performance. Further, this study extends the marketing literature by investigating the role of different forms of marketing capabilities in a complementary fashion in the context of a Middle Eastern economy.


2017 ◽  
Vol 32 (8) ◽  
pp. 1038-1050 ◽  
Author(s):  
Nima Heirati ◽  
Aron O’Cass ◽  
Phyra Sok

Purpose Organizational ambidexterity is argued to be a prerequisite for successful new product development, especially for firms operating in highly competitive emerging markets. Despite growing attention to the importance of ambidexterity, the conditions under which specific forms of ambidexterity are more or less beneficial to new product performance (NPP) remain unclear. This study aims to investigate the contingent value of two specific resource conditions that favor the pursuit of the balanced dimension versus combined dimension of ambidexterity to achieve superior NPP. Design/methodology/approach Survey data were drawn from a sample of 156 high-tech large firms operating in the Middle East and tested through a hierarchical regression analysis. Findings This study highlights the important role of slack resources and social networking capability in enhancing the benefits of the combined dimension of ambidexterity over the balanced dimension of ambidexterity to drive NPP. Originality/value This study extends prior research which has mainly examined organizational characteristics that facilitates organizational ambidexterity and sheds light on the specific resource conditions under which high-technology firms operating in an emerging economy should pursue balanced dimension of ambidexterity or combined dimension of ambidexterity to achieve superior NPP.


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