Paths to Success: How Does Entrepreneurial Orientation Enhance Product Innovativeness of SMEs?

Abstract

This study aims to examine the roles of technology diversity capability and intellectual property (IP) protection capability in mediating the relationship between entrepreneurial orientation (EO) and product innovativeness of SMEs. Based on survey-based data from 119 Taiwanese SMEs, this study finds that EO can enhance product innovativeness of SMEs indirectly through the development of technology diversity capability and IP protection capability. This study also finds that market uncertainty negatively moderates the relationship between EO and IP protection capability. In addition, market uncertainty positively moderates the relationship between technology diversity capability and product innovativeness, while it negatively moderates the relationship between IP protection capability and product innovativeness. This study enriches the body of knowledge in SMEs and product innovativeness literature.