The joint impact of entrepreneurial orientation and market orientation in new product development: Studying firm and environmental contingencies

Previous research has suggested important environmental and firm factors may be involved in the individual and joint implementation of entrepreneurial orientation (EO) and market orientation (MO). In a sample of 179 SMEs, we examine firm-level and environmental-level contingencies regarding EO and MO's joint impact on new product development performance. This study provides further context to which firms should avoid or pursue an EO-MO dual implementation. Contrary to our arguments, the results show that larger firms may be more adept at managing EO and MO simultaneously, whereas inefficiencies may arise with smaller firms. In support of our arguments, we empirically show that firms that focus on services rather than goods benefit from the joint impact of EO and MO. Additionally, environmental turbulence and industries characterized by high technological intensity provide benefits for EO-MO implementation due to opportunities in volatile environments aligning with EO and hedging risk by staying close to customers.