IDEAS home Printed from https://ideas.repec.org/a/eee/techno/v108y2021ics0166497221001061.html
   My bibliography  Save this article

Entrepreneurial orientation and new product development performance in SMEs: The mediating role of business model innovation

Author

Listed:
  • Ferreras-Méndez, José Luis
  • Olmos-Peñuela, Julia
  • Salas-Vallina, Andrés
  • Alegre, Joaquín

Abstract

In the current business context, entrepreneurial orientation (EO) has been highlighted as key to improving firm performance. Despite the overall positive evidence on the association between EO and firm performance, scholars have stressed the importance of taking into account and properly managing intermediate capabilities. The present study analyses the link between EO and New Product Development (NPD) performance, considering Business Model Innovation (BMI) as a mediating variable. A sample of 400 Spanish SMEs is used to test the proposed research model through structural equation modelling and partial least squares analyses. Results reveal that EO contributes to BMI and NPD performance. Moreover, BMI is found to have a partial mediating role between EO and NPD performance. This study makes a novel contribution to the EO and BMI literatures as it finds evidence that business model innovation is an effective way to funnel the firm's entrepreneurial orientation into its innovation processes and to increase the success of new product development. Some suggestions for managers and future lines of research are proposed.

Suggested Citation

  • Ferreras-Méndez, José Luis & Olmos-Peñuela, Julia & Salas-Vallina, Andrés & Alegre, Joaquín, 2021. "Entrepreneurial orientation and new product development performance in SMEs: The mediating role of business model innovation," Technovation, Elsevier, vol. 108(C).
    • Handle: RePEc:eee:techno:v:108:y:2021:i:c:s0166497221001061
    DOI: 10.1016/j.technovation.2021.102325
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166497221001061
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.technovation.2021.102325?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Morris, Michael & Schindehutte, Minet & Allen, Jeffrey, 2005. "The entrepreneur's business model: toward a unified perspective," Journal of Business Research, Elsevier, vol. 58(6), pages 726-735, June.
    2. Jeffrey G. Covin & Kimberly M. Green & Dennis P. Slevin, 2006. "Strategic Process Effects on the Entrepreneurial Orientation–Sales Growth Rate Relationship," Entrepreneurship Theory and Practice, , vol. 30(1), pages 57-81, January.
    3. Rodrigo-Alarcón, Job & García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Parra-Requena, Gloria, 2018. "From social capital to entrepreneurial orientation: The mediating role of dynamic capabilities," European Management Journal, Elsevier, vol. 36(2), pages 195-209.
    4. Voelpel, Sven & Leibold, Marius & Tekie, Eden & von Krogh, Georg, 2005. "Escaping the Red Queen Effect in Competitive Strategy:: Sense-testing Business Models," European Management Journal, Elsevier, vol. 23(1), pages 37-49, February.
    5. Valérie Sabatier & Vincent Mangematin & Tristan Rouselle, 2010. "From Business model to Business model portfolio in the european biopharmaceutical industry," Post-Print hal-00430782, HAL.
    6. John L Naman & Dennis P. Slevin, 1993. "Entrepreneurship and the concept of fit: A model and empirical tests," Strategic Management Journal, Wiley Blackwell, vol. 14(2), pages 137-153, February.
    7. Lumpkin, G. T. & Dess, Gregory G., 2001. "Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle," Journal of Business Venturing, Elsevier, vol. 16(5), pages 429-451, September.
    8. Ricarda B. Bouncken & Christian Lehmann & Katharina Fellnhofer, 2016. "The role of entrepreneurial orientation and modularity for business model innovation in service companies," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 8(3), pages 237-260.
    9. Henry Chesbrough & Richard S. Rosenbloom, 2002. "The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 529-555, June.
    10. Arzubiaga, Unai & Kotlar, Josip & De Massis, Alfredo & Maseda, Amaia & Iturralde, Txomin, 2018. "Entrepreneurial orientation and innovation in family SMEs: Unveiling the (actual) impact of the Board of Directors," Journal of Business Venturing, Elsevier, vol. 33(4), pages 455-469.
    11. Ramon Casadesus-Masanell & Feng Zhu, 2010. "Strategies to Fight Ad-Sponsored Rivals," Management Science, INFORMS, vol. 56(9), pages 1484-1499, September.
    12. G. Tomas M. Hult & David J. Ketchen, 2001. "Does market orientation matter?: a test of the relationship between positional advantage and performance," Strategic Management Journal, Wiley Blackwell, vol. 22(9), pages 899-906, September.
    13. Gerard George & Adam J. Bock, 2011. "The Business Model in Practice and its Implications for Entrepreneurship Research," Entrepreneurship Theory and Practice, , vol. 35(1), pages 83-111, January.
    14. Charles Baden-Fuller & Vincent Mangematin, 2013. "Business models: A challenging agenda," Grenoble Ecole de Management (Post-Print) hal-00869707, HAL.
    15. Ciampi, Francesco & Demi, Stefano & Magrini, Alessandro & Marzi, Giacomo & Papa, Armando, 2021. "Exploring the impact of big data analytics capabilities on business model innovation: The mediating role of entrepreneurial orientation," Journal of Business Research, Elsevier, vol. 123(C), pages 1-13.
    16. Ari Jantunen & Kaisu Puumalainen & Sami Saarenketo & Kalevi Kyläheiko, 2005. "Entrepreneurial Orientation, Dynamic Capabilities and International Performance," Journal of International Entrepreneurship, Springer, vol. 3(3), pages 223-243, September.
    17. Valérie Sabatier & Vincent Mangematin & Tristan Rouselle, 2010. "From Business model to Business model portfolio in the european biopharmaceutical industry," Grenoble Ecole de Management (Post-Print) hal-00430782, HAL.
    18. José C. Casillas & Ana M. Moreno, 2010. "The relationship between entrepreneurial orientation and growth: The moderating role of family involvement," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 22(3-4), pages 265-291, May.
    19. Shibin Sheng & Kevin Zheng Zhou & L. Lessassy, 2013. "NPD speed vs. innovativeness: The contingent impact of institutional and market environments," Post-Print halshs-00862665, HAL.
    20. David J. Teece, 2012. "Dynamic Capabilities: Routines versus Entrepreneurial Action," Journal of Management Studies, Wiley Blackwell, vol. 49(8), pages 1395-1401, December.
    21. Li, Feng, 2020. "The digital transformation of business models in the creative industries: A holistic framework and emerging trends," Technovation, Elsevier, vol. 92.
    22. Pittino, Daniel & Visintin, Francesca & Lauto, Giancarlo, 2017. "A configurational analysis of the antecedents of entrepreneurial orientation," European Management Journal, Elsevier, vol. 35(2), pages 224-237.
    23. Gautam Ray & Jay B. Barney & Waleed A. Muhanna, 2004. "Capabilities, business processes, and competitive advantage: choosing the dependent variable in empirical tests of the resource‐based view," Strategic Management Journal, Wiley Blackwell, vol. 25(1), pages 23-37, January.
    24. Bouncken, Ricarda B. & Fredrich, Viktor, 2016. "Business model innovation in alliances: Successful configurations," Journal of Business Research, Elsevier, vol. 69(9), pages 3584-3590.
    25. Andreas Rauch & Johan Wiklund & G.T. Lumpkin & Michael Frese, 2009. "Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 33(3), pages 761-787, May.
    26. Saebi, Tina & Foss, Nicolai J., 2015. "Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions," European Management Journal, Elsevier, vol. 33(3), pages 201-213.
    27. Desyllas, Panos & Sako, Mari, 2013. "Profiting from business model innovation: Evidence from Pay-As-You-Drive auto insurance," Research Policy, Elsevier, vol. 42(1), pages 101-116.
    28. Pankaj C. Patel & Marko Kohtamäki & Vinit Parida & Joakim Wincent, 2015. "Entrepreneurial orientation-as-experimentation and firm performance: The enabling role of absorptive capacity," Strategic Management Journal, Wiley Blackwell, vol. 36(11), pages 1739-1749, November.
    29. Jeffrey G. Covin & Morgan P. Miles, 2007. "Strategic Use of Corporate Venturing," Entrepreneurship Theory and Practice, , vol. 31(2), pages 183-207, March.
    30. Lee, Sang M. & Peterson, Suzanne J., 2000. "Culture, entrepreneurial orientation, and global competitiveness," Journal of World Business, Elsevier, vol. 35(4), pages 401-416, January.
    31. Amaya Rivas, Adriana & Chen, Yen-Chun & Yang, Ta-Kai, 2020. "Entrepreneurial and alliance orientation alignment in new product development," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    32. Barbara Dyer & X Michael Song, 1997. "The Impact of Strategy on Conflict: A Cross- National Comparative Study of U.S. and Japanese firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(3), pages 467-493, September.
    33. Morgan, Todd & Obal, Michael & Anokhin, Sergey, 2018. "Customer participation and new product performance: Towards the understanding of the mechanisms and key contingencies," Research Policy, Elsevier, vol. 47(2), pages 498-510.
    34. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    35. Agnes Asemokha & Jackson Musona & Lasse Torkkeli & Sami Saarenketo, 2019. "Business model innovation and entrepreneurial orientation relationships in SMEs: Implications for international performance," Journal of International Entrepreneurship, Springer, vol. 17(3), pages 425-453, September.
    36. Ana M. Moreno & José C. Casillas, 2008. "Entrepreneurial Orientation and Growth of SMEs: A Causal Model," Entrepreneurship Theory and Practice, , vol. 32(3), pages 507-528, May.
    37. Charles Baden-Fuller & Vincent Mangematin, 2013. "Business models: A challenging agenda," Post-Print hal-00869707, HAL.
    38. G. Russell Merz & Matthew H. Sauber, 1995. "Profiles of managerial activities in small firms," Strategic Management Journal, Wiley Blackwell, vol. 16(7), pages 551-564.
    39. Green, Kimberly M. & Covin, Jeffrey G. & Slevin, Dennis P., 2008. "Exploring the relationship between strategic reactiveness and entrepreneurial orientation: The role of structure-style fit," Journal of Business Venturing, Elsevier, vol. 23(3), pages 356-383, May.
    40. Sheng, Shibin & Zhou, Kevin Zheng & Lessassy, Leopold, 2013. "NPD speed vs. innovativeness: The contingent impact of institutional and market environments," Journal of Business Research, Elsevier, vol. 66(11), pages 2355-2362.
    41. Julian Birkinshaw, 1997. "Entrepreneurship In Multinational Corporations: The Characteristics Of Subsidiary Initiatives," Strategic Management Journal, Wiley Blackwell, vol. 18(3), pages 207-229, March.
    42. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    43. Ricarda Bouncken & Boris Plüschke & Robin Pesch & Sascha Kraus, 2016. "Entrepreneurial orientation in vertical alliances: joint product innovation and learning from allies," Review of Managerial Science, Springer, vol. 10(2), pages 381-409, March.
    44. Shan, Peng & Song, Michael & Ju, Xiaofeng, 2016. "Entrepreneurial orientation and performance: Is innovation speed a missing link?," Journal of Business Research, Elsevier, vol. 69(2), pages 683-690.
    45. Fernández-Mesa, Anabel & Alegre, Joaquín, 2015. "Entrepreneurial orientation and export intensity: Examining the interplay of organizational learning and innovation," International Business Review, Elsevier, vol. 24(1), pages 148-156.
    46. Johan Wiklund & Per Davidsson & David B. Audretsch & Charlie Karlsson, 2011. "The Future of Entrepreneurship Research," Entrepreneurship Theory and Practice, , vol. 35(1), pages 1-9, January.
    47. Ricarda Bouncken & Beate Cesinger & Victor Tiberius, 2020. "Narcissism, Machiavellianism, and psychopathy of top managers: Can Entrepreneurial Orientation secure performance?," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 12(3), pages 273-302.
    48. Covin, Jeffrey G. & Rigtering, J.P. Coen & Hughes, Mathew & Kraus, Sascha & Cheng, Cheng-Feng & Bouncken, Ricarda B., 2020. "Individual and team entrepreneurial orientation: Scale development and configurations for success," Journal of Business Research, Elsevier, vol. 112(C), pages 1-12.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aleksandra Gawel & Timo Toikko, 2023. "Quality of Governance and Welfare Generosity as Institutional Predictors of Entrepreneurship: European Perspective," SAGE Open, , vol. 13(4), pages 21582440231, October.
    2. Lixin Sheng & Jibao Gu & Jianlin Wu, 2023. "How does entrepreneurial orientation influence firm performance? The roles of corporate social responsibility and institutional environments," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 2021-2036, July.
    3. Jianmin Song & Senmao Xia & Demetris Vrontis & Arun Sukumar & Bing Liao & Qi Li & Kun Tian & Nengzhi Yao, 2022. "The Source of SMEs’ Competitive Performance in COVID-19: Matching Big Data Analytics Capability to Business Models," Information Systems Frontiers, Springer, vol. 24(4), pages 1167-1187, August.
    4. Mahrukh Aslam & Imran Shafi & Jamil Ahmad & Roberto Marcelo Alvarez & Yini Miró & Emmanuel Soriano Flores & Imran Ashraf, 2022. "An Analytical Framework for Innovation Determinants and Their Impact on Business Performance," Sustainability, MDPI, vol. 15(1), pages 1-20, December.
    5. Xihua Yu & Ning Cao & Hao Ren, 2023. "The Impact of Entrepreneurial Orientation on the Sustainable Innovation Capabilities of New Ventures: From the Perspective of Ambidextrous Learning," Sustainability, MDPI, vol. 15(11), pages 1-19, June.
    6. Naeini, Ali Bonyadi & Zamani, Mehdi & Daim, Tugrul U. & Sharma, Mahak & Yalcin, Haydar, 2022. "Conceptual structure and perspectives on “innovation management”: A bibliometric review," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    7. Lan, Lan & Zhou, Zhifang, 2024. "Complementary or substitutive effects? The duality of digitalization and ESG on firm's innovation," Technology in Society, Elsevier, vol. 77(C).
    8. Candi, Marina & Kitagawa, Fumi, 2022. "Performance implications of business model centrality over technology-based firms’ life courses," Technovation, Elsevier, vol. 118(C).
    9. Merín-Rodrigáñez, Joan & Dasí, Àngels & Alegre, Joaquín, 2024. "Digital transformation and firm performance in innovative SMEs: The mediating role of business model innovation," Technovation, Elsevier, vol. 134(C).
    10. John Kiplangat Cheruiyot BA DipEd MSc MBA, 2024. "The Resilience of Micro and Small Enterprises in Kenya from a Strategic Perspective: A Systematic Literature Review," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3s), pages 3197-3218, August.
    11. Marcon, Arthur & Ribeiro, José Luis Duarte & Olteanu, Yasmin & Fichter, Klaus, 2024. "How the interplay between innovation ecosystems and market contingency factors impacts startup innovation," Technology in Society, Elsevier, vol. 76(C).
    12. Attah-Boakye, Rexford & Adams, Kweku & Hernandez-Perdomo, Elvis & Yu, Honglan & Johansson, Jeaneth, 2023. "Resource re-orchestration and firm survival in crisis periods: The role of business models of technology MNEs during COVID-19," Technovation, Elsevier, vol. 125(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bradley A. George & Louis Marino, 2011. "The Epistemology of Entrepreneurial Orientation: Conceptual Formation, Modeling, and Operationalization," Entrepreneurship Theory and Practice, , vol. 35(5), pages 989-1024, September.
    2. D’Angelo, Alfredo & Presutti, Manuela, 2019. "SMEs international growth: The moderating role of experience on entrepreneurial and learning orientations," International Business Review, Elsevier, vol. 28(3), pages 613-624.
    3. Katharina Fellnhofer, 2019. "The Complementary Effects Of Firms’ And Team Leaders’ Entrepreneurial Orientation On Innovation Success And Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-32, June.
    4. Agnes Asemokha & Jackson Musona & Lasse Torkkeli & Sami Saarenketo, 2019. "Business model innovation and entrepreneurial orientation relationships in SMEs: Implications for international performance," Journal of International Entrepreneurship, Springer, vol. 17(3), pages 425-453, September.
    5. Schweiger, & Baldauf,, 2016. "„Entrepreneurial Orientation“: Eine Bestandsaufnahme der Konstruktschärfe," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 70(4), pages 423-447.
    6. Patrizia Di Tullio & Diego Valentinetti & Michele Antonio Rea, 2018. "Integrating The Business Model Puzzle: A Systematic Literature Review," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 9(1), pages 1-46, June.
    7. García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Ignacio Canales, J., 2013. "Entrepreneurial orientation and the threat of imitation: The influence of upstream and downstream capabilities," European Management Journal, Elsevier, vol. 31(3), pages 263-277.
    8. Siriram, Rajenlall, 2022. "An innovative approach to overcoming technological challenges and improving firm performance in South Africa," Technology in Society, Elsevier, vol. 68(C).
    9. Hernández-Perlines, Felipe & Covin, Jeffrey G. & Ribeiro-Soriano, Domingo E., 2021. "Entrepreneurial orientation, concern for socioemotional wealth preservation, and family firm performance," Journal of Business Research, Elsevier, vol. 126(C), pages 197-208.
    10. Engelen, Andreas & Kube, Harald & Schmidt, Susanne & Flatten, Tessa Christina, 2014. "Entrepreneurial orientation in turbulent environments: The moderating role of absorptive capacity," Research Policy, Elsevier, vol. 43(8), pages 1353-1369.
    11. Antonio Rodríguez-Peña, 2023. "Corporate entrepreneurship and firm performance relationship under the moderating effect of environmental dynamism: Replication and extension analysis," Journal of International Entrepreneurship, Springer, vol. 21(4), pages 550-585, December.
    12. Jörg Freiling & Christoph Lütke Schelhowe, 2014. "The Impact of Entrepreneurial Orientation on the Performance and Speed of Internationalization," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 10(4), pages 169-199.
    13. Palmer, Carolin & Niemand, Thomas & Stöckmann, Christoph & Kraus, Sascha & Kailer, Norbert, 2019. "The interplay of entrepreneurial orientation and psychological traits in explaining firm performance," Journal of Business Research, Elsevier, vol. 94(C), pages 183-194.
    14. Dessì, Cinzia & Dettori, Angela & Floris, Michela, 2023. "Exploring different configurations of entrepreneurial orientation in small artisan family firms: A multi-case study," Journal of Family Business Strategy, Elsevier, vol. 14(3).
    15. Anna Vuorio & Lasse Torkkeli & Liisa-Maija Sainio, 2020. "Service innovation and internationalization in SMEs: antecedents and profitability outcomes," Journal of International Entrepreneurship, Springer, vol. 18(1), pages 92-123, March.
    16. Jelle Schepers & Wim Voordeckers & Tensie Steijvers & Eddy Laveren, 2014. "The entrepreneurial orientation–performance relationship in private family firms: the moderating role of socioemotional wealth," Small Business Economics, Springer, vol. 43(1), pages 39-55, June.
    17. Tobias Kollmann & Christoph Stöckmann, 2014. "Filling the Entrepreneurial Orientation–Performance Gap: The Mediating Effects of Exploratory and Exploitative Innovations," Entrepreneurship Theory and Practice, , vol. 38(5), pages 1001-1026, September.
    18. Wales, William J. & Kraus, Sascha & Filser, Matthias & Stöckmann, Christoph & Covin, Jeffrey G., 2021. "The status quo of research on entrepreneurial orientation: Conversational landmarks and theoretical scaffolding," Journal of Business Research, Elsevier, vol. 128(C), pages 564-577.
    19. Belussi, Fiorenza & Orsi, Luigi & Savarese, Maria, 2019. "Mapping Business Model Research: A Document Bibliometric Analysis," Scandinavian Journal of Management, Elsevier, vol. 35(3).
    20. Vincenza Odorici & Manuela Presutti & Marco Savioli, 2016. "Strategic orientation of hotels: evidence from a contingent approach," Working Paper series 16-06, Rimini Centre for Economic Analysis, revised May 2016.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:techno:v:108:y:2021:i:c:s0166497221001061. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/01664972 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.