Proactive Entrepreneurial Behaviour, Market Orientation, and Innovation Outcomes: A Study of Small- and Medium-sized Manufacturing Firms in the UK

Liu, Gordon; Ko, Wai Wai Joyce; Ngugi, Isaac and Takeda, Sachiko (2017). Proactive Entrepreneurial Behaviour, Market Orientation, and Innovation Outcomes: A Study of Small- and Medium-sized Manufacturing Firms in the UK. European Journal of Marketing, 51(11/12) pp. 1980–2001.

DOI: https://doi.org/10.1108/EJM-11-2016-0663

Abstract

Purpose
Drawing from resource-based theory, the authors aim to study how and under what conditions small- and medium-sized enterprises (SMEs) capitalise on their proactive entrepreneurial behaviour (PEB) to achieve new product development (NPD) performance.

Design/methodology/approach
The authors’ data were drawn from a cross-sectional questionnaire survey of 401 UK-based SMEs in the manufacturing sector.

Findings
The authors identify an upward curvilinear relationship between PEB and NPD performance. Taking a step further, the authors propose and confirm that this curvilinear association arises from, in part, SMEs’ innovation capability, which in turn translates into NPD performance. The authors also find that this upward curvilinear relationship between PEB and innovation capability flips to a downward curvilinear relationship when firms pursue a customer and competitor orientation.

Originality/value
This paper looks beyond the linear relationship that exists among entrepreneurial behaviour, market orientation and innovation outcomes.