The influences of entrepreneurial orientation on product advantage and new product success

Abstract

Purpose

The purpose of this paper is to improve understanding of what makes or breaks a new product by exploring the direct and indirect impacts of the three dimensions of entrepreneurial orientation (EO) – innovativeness, risk taking and proactiveness – on product advantage and new product success (NPS).

Design/methodology/approach

Based on the literature reviewed, theoretical relationships among five constructs and relevant hypotheses were developed and subsequently tested using data collected from 244 electronics manufacturers in China.

Findings

The results show that the three dimensions of EO and product advantage are the driving antecedents of NPS. Moreover, it is confirmed that the relationships between the three dimensions of EO and NPS are mediated by product advantage and the relationship between risk taking and product advantage is moderated by innovativeness and proactiveness.

Originality/value

Literature about the interplay among the three dimensions of EO and NPS are often disparate and heterogeneous. The paper overcomes this problem by confirming the relative influences of each of the EO dimensions on NPS, as well as their respective indirect impacts on NPS through the intermediate construct of product advantage. The findings help to enrich our knowledge on EO, particularly on the roles of innovativeness, proactiveness and risk taking in new product development in the electronics manufacturing sector in China.

Citation

Kam Sing Wong, S. (2012), "The influences of entrepreneurial orientation on product advantage and new product success", Journal of Chinese Entrepreneurship, Vol. 4 No. 3, pp. 243-262. https://doi.org/10.1108/17561391211262175