Abstract
We integrate CEO attention perspective with the entrepreneurial alertness to examine rate of new product introductions. We propose that a firm’s rate of new product introduction is predicted independently and jointly by CEO’s attention and alertness by working through two separate mechanisms of problem identification and opportunity identification. Examining this relationship in the context of 368 US based small and medium size enterprises (SME) across major industries during 2004-2015, we show that, CEO’s attention to R&D and customers positively influence new product introductions while attention to organization negatively impact the relationship. We find that CEO alertness positively impacts rate of NPI, but its effect is highest at an intermediate level of alertness. We further find that the rate of NPI increases as CEO alertness and CEO attention increase. We contribute to the literature by fusing attention-based view and entrepreneurial alertness and bringing new insights in understanding NPI by SMEs.
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