Top Management Risk-Taking, Strategic Orientations and New Product Performance
The research investigates the effect of top management risk taking on organizational strategic orientations and their effects on new product development (NPD) performance. By employing a sample of 183 companies and using PLS path analysis to test hypotheses, the study shows positive effects of top management risk taking on technological orientation and proactive market orientations and positive effects of technological orientation and proactive market orientation on NPD performance. Hence, the study explains the importance of top management risk taking on strategic orientations and highlights the importance of converting firm strategic orientations into NPD performance. The paper advances theory development by contributing to the understanding of the effect of top management risk taking on proactive market orientation and technological orientation and combined effect of these two as drivers of NPD performance. Though each one of these theoretical constructs has previously been studied as antecedents of NPD performance, little is known about the importance of the sequence of one construct with others. This study is unique in that it incorporates all these constructs as antecedents of NPD program performance.