Does Risk‐taking Promote New Product Development Performance? An Environmental Dynamism Perspective

Abstract

Abstract Using an “entrepreneurial orientation–performance” framework and environmental contingency theory, this study proposes and empirically explores a theoretical framework for understanding the impacts of risk‐taking and environmental dynamism on new product development (NPD) performance in emerging markets. We deepen the analysis of environmental dynamism into customer, competitor, supplier, institutional environment, and economic environment. The results demonstrate that risk‐taking and environmental dynamism contribute both individually and interactively to the performance of NPD. Further, of all the environmental units, environmental dynamism from suppliers and regulatory groups has a significant, direct and positive moderating effect on the performance of NPD.

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