Entrepreneurial and alliance orientation alignment in new product development

Given different strategic logics and implications of entrepreneurial orientation (EO) and alliance orientation (AO), this study develops an integrative model of an alignment between EO and AO in the context of new product development (NPD) and articulates the results of a study designed to examine its effects on a firm's NPD activities and performance outcomes. The authors empirically investigate the model through a cross-sectional survey of 141 Taiwanese electronics firms. Drawing from the coalignment perspective, these firms are distinguished into four strategic groups labeled as EO (high EO and low AO), AO (low EO and high AO), EA (high EO and high AO), and CO (low EO and low AO) firms. Empirical results suggest that the four groups of firms significantly differ in terms of NPD process characteristics (decision-making flexibility, market-focused learning, and internally focused learning), program characteristics (product program meaningfulness and newness), and performance outcome (new product success). Theoretical and managerial implications of the results are demonstrated.