Does entrepreneurial intention for innovation at firm-level matter to affect performance?

Abstract

Purpose: The purpose of this paper is to 1) examine the influence of firm-level entrepreneurial attitude toward innovation, subjective norms for innovation, and perceived control over innovation on firms’ intention for innovation; 2) study the influence of firms’ intention for innovation on new product development performance; 3) test the effect of new product development performance on firms’ financial performance. Design/methodology/approach: The proposed theoretical model has been analyzed through structural equation modelling using SmartPLS software and structured questionnaires has been distributed among 244 entrepreneurs in Oman. Findings: By empirically testing the antecedents of the firm-level entrepreneurs’ intention with a focus on existing firms (not their intention for new venture creation), it was found that attitudes toward innovation and perceived behavioral control do predict firm-level entrepreneurs’ intention for innovation. The firm-level entrepreneurs’ intention for innovation was also found to positively affect new product development performance. And new product performance was found to enhance financial performance of firms. Practical implications: The findings of this study interject a better understanding of the new product development performance and financial performance which can be achieved by the firm-level entrepreneurial intention for innovation. Entrepreneurs can effectively convey the relative benefit of SME's innovation by emphasizing how the innovation in the firm can help to increase revenue, profitability, boost sales growth, and strengthen the financial health of the SMEs by developing new products for the market. Originality/value: This research contributes to the understanding the relationship between the entrepreneurs’ behavioural characteristics and the firm level entrepreneurial’ intention and how it affects new product development performance and financial performance.