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      When is entrepreneurial orientation beneficial for new product performance? The roles of ambidexterity and market turbulence

      , , , ,
      International Journal of Entrepreneurial Behavior & Research
      Emerald

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          Abstract

          Purpose

          Entrepreneurial orientation (EO) is an exploratory orientation because its dimensions such as innovativeness, proactiveness and risk-taking are the essence of exploration that entails uncertain returns. While literature suggests firms might need to counterbalance and complement EO with another orientation for organisational success, research on this area remains limited. Drawing on organisational learning theory, the purpose of this article is to explore whether and how the EO dimensions and organisational ambidexterity complement each other to enhance new product performance. More specifically, the authors explore the configurations of innovativeness, proactiveness, risk-taking and ambidexterity for superior new product performance under different levels of market turbulence.

          Design/methodology/approach

          Based on a configurational perspective, the authors applied fuzzy set qualitative comparative analysis (fsQCA) on a sample of 88 small and medium-sized firms from the UK. Using fsQCA allows the authors to uncover the potential complementary role between the EO dimensions and ambidexterity for superior new product performance.

          Findings

          The results of this paper reveal three configurations that are sufficient to produce superior new product performance. The results suggest that the EO dimensions and ambidexterity can complement each other to enhance new product performance. Further, under the turbulent market environment, the EO dimensions are also sufficient to produce superior new product performance.

          Originality/value

          By adopting a configurational perspective using fsQCA, the study provides a more holistic understanding of how the EO dimensions work together to influence new product performance. It also contributes to the literature by uncovering the complementary role of the EO dimensions and ambidexterity in shaping new product performance.

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          Most cited references82

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          Exploration and Exploitation in Organizational Learning

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            Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance

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              Ambidextrous Organizations: Managing Evolutionary and Revolutionary Change

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                Author and article information

                Contributors
                (View ORCID Profile)
                Journal
                International Journal of Entrepreneurial Behavior & Research
                IJEBR
                Emerald
                1355-2554
                September 21 2020
                January 04 2021
                September 21 2020
                January 04 2021
                : 27
                : 1
                : 79-98
                Article
                10.1108/IJEBR-02-2020-0103
                1eb527de-35c3-4906-8c15-379cca6f5e4a
                © 2021

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