Speeding up new product development through entrepreneurial orientation in SMEs: The moderating role of ambidexterity.

Abstract

This paper analyzes the influence of small and medium-sized enterprises' (SMEs) entrepreneurial orientation (EO) on its capacity to quickly introduce new products to the market (namely, speed to market). Specifically, we suggest that firms will exhibit greater speed to market when displaying either low or high levels of EO. We also suggest that the EO – speed to market relationship will be contingent on firms' ambidexterity, or its capacity to simultaneously embrace exploratory and exploitative strategies. To test our hypotheses, we collected survey data from 384 SMEs belonging to four sectors in Spain; biotechnology, ceramic tiles, toys and footwear. Our findings confirm the existence of a U-shaped connection between EO and speed to market, and evidence that this curvilinear relationship is accentuated when SMEs exhibit greater ambidexterity.

Publication
Industrial Marketing Management

Highlights

  1. We suggest a curvilinear relationship between EO and speed to market.
  2. Conservative firms rely on standardization and existing knowledge to innovate faster.
  3. Entrepreneurial firms' high risk-taking nature also facilitates speed to market.
  4. This U-shaped link is contingent on firms' ambidexterity.
  5. We use a 2015 dataset with 384 Spanish SMEs on biotech, ceramics, toys and footwear.