Market orientation, technological opportunity, and new product innovation performance

Abstract

This study analyzes the effects of innovation-driven (ID) on a company’s new product innovation performance using knowledge-based theory. Furthermore, it explores absorptive capacity’s (ACAP) intermediary effect on ID and new product innovation performance (NPIP). Hierarchical multiple regression was used for hypothesis verification using data from 350 Chinese high-tech companies. The findings reveal that innovation affects NPIP, and the relationships are intermediated by ACAP. However, market volatility (MV) negatively moderates the relationship between ID and ACAP. According to these results, it can be concluded that the market and technology information acquired by a company must be digested, absorbed, and converted into useful knowledge to achieve organizational goals. This study offers implications for the development of high-tech companies in China and worldwide in the area of new product innovation.