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Strategic Orientation, Digital Capabilities, and New Product Development in Emerging Market Firms: The Moderating Role of Corporate Social Responsibility

Author

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  • Xiaoyan Pan

    (School of Economics and Management, Taizhou University, Taizhou 225300, China
    Seoul Business School, Seoul School of Integrated Sciences and Technologies (aSSIST), Seoul 03767, Korea)

  • Kum-Sik Oh

    (Division of Undeclared and Exploratory Majors, Pukyong National University, Busan 48513, Korea)

  • Mengmeng Wang

    (College of Business, Gachon University, Seongnam 13120, Korea)

Abstract

Strategic orientation represents an important antecedent condition for new product development (NPD) performance, which can help firms create competitive advantage and promote sustainable growth. This study aims to explore the role of strategic orientation (i.e., technology orientation, customer orientation) in promoting firms’ digital capabilities and NPD performance in the context of digital transformation. Using a resource-based view and its extended dynamic capabilities as a theoretical foundation, we provide a comprehensive framework by developing a set of hypotheses. In addition, we examine the moderating effect of corporate social responsibility (CSR) on the relationship between strategic orientation and NPD performance. Using data from a sample of 174 Chinese manufacturing firms, we perform structural equation modelling to empirically test our arguments. Our findings show that technology orientation and customer orientation play a critical role in driving firms’ digital capabilities. Moreover, we find that the two dimensions of strategic orientation tend to exert different effects on NPD performance, with technology orientation playing a more significant role than customer orientation in contributing to NPD performance. Finally, our findings strongly suggest that a firm’s CSR engagement moderates the relationship between its customer orientation and NPD performance, such that the higher the firm’s engagement in CSR, the greater the contribution of customer orientation to the firm’s NPD performance. Our findings provide new insights into non-market mechanisms such as CSR through which firms can compensate for their strategically oriented practices in the NPD process.

Suggested Citation

  • Xiaoyan Pan & Kum-Sik Oh & Mengmeng Wang, 2021. "Strategic Orientation, Digital Capabilities, and New Product Development in Emerging Market Firms: The Moderating Role of Corporate Social Responsibility," Sustainability, MDPI, vol. 13(22), pages 1-16, November.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:22:p:12703-:d:680934
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    References listed on IDEAS

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    4. Yu Gao & Xiuyun Yang & Shuangyan Li, 2022. "Government Supports, Digital Capability, and Organizational Resilience Capacity during COVID-19: The Moderation Role of Organizational Unlearning," Sustainability, MDPI, vol. 14(15), pages 1-19, August.
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    6. Trujillo-Gallego, Mariana & Sarache, William & Sousa Jabbour, Ana Beatriz Lopes de, 2022. "Digital technologies and green human resource management: Capabilities for GSCM adoption and enhanced performance," International Journal of Production Economics, Elsevier, vol. 249(C).

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