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The Impact of Entrepreneurial Orientation on New Product Creativity, Competitive Advantage and New Product Performance in SMEs: The Moderating Role of Corporate Life Cycle

Author

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  • Ho-Taek Yi

    (Department of Business Administration, Keimyung University, Daegu 42601, Korea)

  • Fortune Edem Amenuvor

    (Department of Emerging Technology Innovation and Management, Hanil University and Presbyterian Theological Seminary, Jeonbuk 55359, Korea)

  • Henry Boateng

    (Institutional Research Unit, D’Youville College, Buffalo, NY 14201, USA)

Abstract

The current study aims to empirically examine the effect of entrepreneurial orientation on new product creativity, competitive advantage, and new product performance. Data are collected from 424 Small and Medium-sized Enterprises (SMEs) in South Korea. The suggested hypotheses are tested through the structural equation modeling technique. The analysis outcome shows that entrepreneurial orientation has a significant positive effect on both new product (NP) novelty and new product meaningfulness. The study further finds that both new product novelty and meaningfulness have significant positive impacts on competitive advantage, respectively, while the latter has a significant positive effect on new product performance. Similarly, the study finds that corporate life cycle significantly moderates the relationship between entrepreneurial orientation and new product meaningfulness. The study offers practical and theoretical insights into understanding entrepreneurship dynamics, new product creativity, and new product performance. The research shows that SME managers must adopt an entrepreneurial orientation at an early stage in the life cycle.

Suggested Citation

  • Ho-Taek Yi & Fortune Edem Amenuvor & Henry Boateng, 2021. "The Impact of Entrepreneurial Orientation on New Product Creativity, Competitive Advantage and New Product Performance in SMEs: The Moderating Role of Corporate Life Cycle," Sustainability, MDPI, vol. 13(6), pages 1-20, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:6:p:3586-:d:522795
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    References listed on IDEAS

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    2. Ingrid R. Epezagne Assamala & Wenyuan Li & Sheikh Farhan Ashraf & Nausheen Syed & He Di & Mehrab Nazir, 2022. "Mediation-Moderation Model: An Empirical Examination of Sustainable Women Entrepreneurial Performance towards Agricultural SMEs in Ivory Coast," Sustainability, MDPI, vol. 14(10), pages 1-21, May.
    3. Huatao Peng & L’hocine Walid, 2022. "The Effects of Entrepreneurs’ Perceived Risks and Perceived Barriers on Sustainable Entrepreneurship in Algeria’s SMEs: The Mediating Role of Government Support," Sustainability, MDPI, vol. 14(17), pages 1-22, September.
    4. Marcela Benites & Romel Ramón González-Díaz & Ángel Acevedo-Duque & Luis Armando Becerra-Pérez & Graciela Tristancho Cediel, 2021. "Latin American Microentrepreneurs: Trajectories and Meanings about Informal Work," Sustainability, MDPI, vol. 13(10), pages 1-16, May.
    5. Monika Tkacz & Izaskun Agirre-Aramburu & Aitor Lizartza-Martin, 2023. "Is Team Entrepreneurial Orientation important in generating creative business ideas? The moderating role of team-perceived heterogeneity and the individual creative mindset," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 19(1), pages 79-111.
    6. Adrianela Angeles & Adriana Perez-Encinas & Cristian E. Villanueva, 2022. "Characterizing Organizational Lifecycle through Strategic and Structural Flexibility: Insights from MSMEs in Mexico," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(2), pages 271-290, June.

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