The role of market orientation and entrepreneurial orientation for new product development performance in manufacturing firms

The overall purpose of this article is to examine the relationships between two strategic orientations and performance in new product development. The first orientation considered is market orientation; the second one considered is entrepreneurial orientation, which reflects a firm's propensity to innovate, to be proactive, as well as its willingness to take risks. Drawing upon a sample of 224 mid-sized manufacturing firms, multiple regressions with and without interaction terms were used for testing seven hypotheses. The results show that a market orientation and innovativeness were positively related to performance in new product development, while proactiveness and risk taking show no such relationship. The results also show that neither product characteristics nor environmental characteristics moderate these relationships. In terms of implications, our results suggest that contradictory and to some extent paradoxical capabilities are needed to increase performance in new product development, and that the different components of an entrepreneurial orientation do not impact new product development performance equally.