From pioneering orientation to new product performance through competitive tactics in SMEs

Abstract

The literature regarding entry timing suggests that pioneering orientation (PO) is a key determinant factor of new product performance (NPP) due to ‘first mover advantages’. The contradictory results and specific biases raise a research gap on which conditions and processes lead PO to a higher NPP. This paper proposes to fill this gap by designing and testing a model examining to what extent development of competitive tactics drive and explain the way from PO to NPP. We test the model on a sample of 224 footwear firms. Results show that, separately, each of the competitive tactics has a total mediating effect linking PO with NPP. Introducing the competitive tactics into a multiple mediator model the routes from PO to NPP through low cost and innovation differentiation are relevant and compatible. However, marketing differentiation is less effective. The study provides new ways of linking the entry timing and advantage strategy perspectives.