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The joint impact of entrepreneurial orientation and market orientation in new product development: Studying firm and environmental contingencies

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  • Morgan, Todd
  • Anokhin, Sergey Alexander

Abstract

Previous research has suggested important environmental and firm factors may be involved in the individual and joint implementation of entrepreneurial orientation (EO) and market orientation (MO). In a sample of 179 SMEs, we examine firm-level and environmental-level contingencies regarding EO and MO's joint impact on new product development performance. This study provides further context to which firms should avoid or pursue an EO-MO dual implementation. Contrary to our arguments, the results show that larger firms may be more adept at managing EO and MO simultaneously, whereas inefficiencies may arise with smaller firms. In support of our arguments, we empirically show that firms that focus on services rather than goods benefit from the joint impact of EO and MO. Additionally, environmental turbulence and industries characterized by high technological intensity provide benefits for EO-MO implementation due to opportunities in volatile environments aligning with EO and hedging risk by staying close to customers.

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  • Morgan, Todd & Anokhin, Sergey Alexander, 2020. "The joint impact of entrepreneurial orientation and market orientation in new product development: Studying firm and environmental contingencies," Journal of Business Research, Elsevier, vol. 113(C), pages 129-138.
    • Handle: RePEc:eee:jbrese:v:113:y:2020:i:c:p:129-138
    DOI: 10.1016/j.jbusres.2019.06.019
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    3. Hannele Haapio & Joel Mero & Heikki Karjaluoto & Aijaz A. Shaikh, 2021. "Implications of the COVID-19 pandemic on market orientation in retail banking," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 26(4), pages 205-214, December.
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    6. Rostain, Marjolaine, 2021. "The impact of organizational culture on entrepreneurial orientation: A meta-analysis," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
    7. Du, Yunzhou & Kim, Phillip H., 2021. "One size does not fit all: Strategy configurations, complex environments, and new venture performance in emerging economies," Journal of Business Research, Elsevier, vol. 124(C), pages 272-285.
    8. Ardito, Lorenzo & Raby, Simon & Albino, Vito & Bertoldi, Bernardo, 2021. "The duality of digital and environmental orientations in the context of SMEs: Implications for innovation performance," Journal of Business Research, Elsevier, vol. 123(C), pages 44-56.
    9. Kalnbalkite, Antra & Brakovska, Vita & Terjanika, Viktorija & Pubule, Jelena & Blumberga, Dagnija, 2023. "The tango between the academic and business sectors: Use of co-management approach for the development of green innovation," Innovation and Green Development, Elsevier, vol. 2(4).
    10. Lyu, Chongchong & Zhang, Feng & Ji, Jing & Teo, Thompson S.H. & Wang, Ting & Liu, Zifan, 2022. "Competitive intensity and new product development outcomes: The roles of knowledge integration and organizational unlearning," Journal of Business Research, Elsevier, vol. 139(C), pages 121-133.

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